I

ATI ON
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~M AR KE T
'm'«f fHcf>I~/ GOVERNMENT OF INDIA
~ it'"t'ilatl, ~IGI~ ftt\llll/ MINISTRY OF FINANCE, DEPARTMENT OF REVE
NUE
31' ~~ 'cf>"I cf>it1fat1 / OFF ICE OF THE SUPERIN
TENDENT
<b~ tl Gftt(~c!l 't(ci <b~ tl '3Nlcl lg(wtf>, "s)dll~~I ~,:ttlldlGIH,~·13~<\,a1
CGST & CENTRAL EXCISE, KUARMUNDA RANGE,
NAYABAZAR, ROURKELA-769010
e-mail id :- kuarmundagstrange@[Link]
C. No. FE-2 0(46 )/GS T Retu rn Scru tiny /202 0-21
To /KR/ 2024 Date :2-, / 1 1 / 2...a 2-L-i
Trad e Name: Pass ary Mine rals Priva te Limited
Legal Name: Pass ary Mine rals Priva te Limited
GSTIN: 21AABCP0611Q1ZO
At:K umjh aria, Kuar rnun da,B ijaba hal,
Sund arga rh, Odis ha, 7700 39

DEMAND-CUM-SHOW CAUSE NOTICE

Whe reas it appe ars that M/s. Pass ary Minerals Priva
te Limited, Legal Name: Pass ary
Mine rals Priva te Limited, Kum jhari a, Kuar mun da,
Bijab ahal, Sund arga rh, Odid ha, 7700 39
havi ng GSTIN-21AABCP06 l 1Q lZO (here inaft er
refer red to as "the Noticee"), enga ged in
supp ly of Good s & Serv ices falling unde r HSN/SAC
Codes 3816 0000 , 6902 1010 , 7221 0011 ,
2523 1000 , 2506 1010 & 0044 0225 , appe ars to be
contravened the prov ision s laid down in
Sect ion 16 of the CGST /SGS T Act, 2017 read
with Secti on 20 of the IGST Act, 2017
(here inaft er refer red to as "the Act") and rule 36
of the CGST / SGST Rule s, 2017 (here inaft er
refer red to as "the Act") inasm uch as they have
availed and utiliz ed exce ss Inpu t Tax Cred it
(ITC) ofRs .5,05 ,584 .15/- (IGS TofR s.4,1 7,90 1.45
/- + CGS TofR s.43 ,841 .35/- + SGS Tof
Rs.4 3,84 1.35 /-) (Rupees Five Lakh Five Thou sand
Five Hund red Eighty Four and Fifteen Paisa
only) as per the Inpu t Tax Credit (ITC) availed i.r.o 'All
other ITC' in table 4(A)(5) of Form GSTR-3B
and ITC of inwa rd supp lies in Form GSTR-2A (Exel.
RCM) for the period 2020 -21, thus maki ng the
said availment of said ITC purp orted ly appe ars to be
irregular.
AND
Whe reas it appe ars that the exce ss Inpu t Tax Cred
it (ITC) ofRs .5,05 ,584 .15/- appe ars
to be wrongfully avail ed or utiliz ed with allegedly
an inten tion to evad e tax, is requ ired to be
recov erabl e from the Noticee unde r the prov ision
s of Secti on 73(1) of the CGST /SGS T Act,
2017 read with corre spon ding Secti on 20 of the IGST
Act, 2017 along with inter est there on at
the appr opria te rate as presc ribed unde r Secti on
50(1) of the CGS T/SG ST Act, 2017 and
corre spon ding Secti on 20 of the IGST Act, 2017 .

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 AND
under Sectio n
Wher eas it also appea rs that the Notice e is also liable to penal action
73 1 Act, 2017 and
( ) of the Act read with and Sectio n 122(2)(a) of the CGST /SGST
availm ent of ITC taken
corres pondi ng Sectio n 20 of the IGST Act, 2017 for the said irregu lar
in exces s with an intent to evade paym ent of GST.

2.0. Groun d of allega tions:

Sectio n 61 of the
Durin g the cours e of scruti ny of return s filed for FY: 2020- 21 under
Miner als Privat e Limite d,
CGST /SGST /IGST Act, 2017 of the Notice e namel y, M/s Passa ry
Kuarm unda, Bijaba hal,
Legal Name : Passa ry Miner als Privat e Limite d, Kumjh aria,
it was notice d that they
Sunda rgarh , Odidh a, 77003 9 havin g GSTIN -21AA BCP06 11Q1Z O,
5,584 .15/- (IGST of
have availe d and utilize d exces s Input Tax Credit (ITC) of Rs.5,0
1.35/- ) as per ITC availe d
Rs.4,1 7,901 .45/- + CGST of Rs. 43,84 1.35/- + SGST of Rs. 43,84
Tax Credi t (ITC) of inwar d
i.r.o 'All other ITC' in Table 4(A)(5) of GSTR -3B and as per Input
rs to be contra ventio n of
suppl ies in GSTR -2A (Exel RCM) for the F.Y. 2020- 21, which appea
n 20 of the IGST Act,
Sectio n 16 of the CGST /SGST Act, 2017 read with corres pondi ng Sectio
in Table below : -
201 7 read with rule 36 of the CGST / SGST Rules, 201 7 as detail ed
Table -A

SL Descri ption Total ITC SGST/UTGST

No Involved (in IGST (In Rs.) CGST (In Rs.) (In Rs.)
Rs.)
01 ITC availe d i.r.o 'All other 2,77,8 0,963. 00 2, 10,86, 085.00 33,47, 439.00 33,47, 439.00
ITC' in Table 4(A)(S) of GSTR
3B
02 ITC of inward suppli es in 2, 72, 75,378 .85 2,06,6 8, 183.55 33,03, 597.65 33,03, 597 .65
GSTR 2A (Exel. RCMJ
03 ITC as per Table BA of 2, 73,95, 926.38 2,06,5 6,518. 96 33,69, 703. 71 33,69, 703.71
GSTR-9
Difference (1-2) & (1-3), higher of 5,05,5 84.15 4, 17,901 .45 43,841 .35 43,841 .35
the two
TAX Liabil ity 5,05,5 84.15 4,17,9 01.45 43,84 1.35 43,841 .35

e vide letter C. No.

2.1 Accor dingly , the above discre pancy was comm unica ted to the Notice
dated 25.09 .2024 &
FE-20 (46)/G ST Retur n Scrut iny/2 020-2 1/KR /2024 /273 & 281
BO Portal , Physic al form &
08.10 .2024 (RUD- 1) under the Form ASMT -10 throu gh the GST
s or pay/re verse the such
Email for subm ission of expla nation for afores aid discre pancie
that they neithe r furnis hed
exces s availe d & utilize d Input Tax Credi t (ITC), but it is observ ed
Tax Credit (ITC) for the
any clarifi cation nor pay /rever se such exces s availe d & utilize d Input
Notice e failed to submi t
FY: 2020- 21 along with intere st within the stipul ated time. Since the
s, theref ore, it looks
any reply again st the above letters despit e of giving ample oppor tunitie
2/9
like the Noticee a greed Wl
·th the aforesaid discrepancy. Accordingly, for availe d & uti·lize d
excess Input Tax Credit (ITC) to the tune of Rs.5,05,584.15/- (IGST of Rs. 4,17,901.45/- +
CGST of Rs. 43,841.45/- + SGST of Rs. 43,841.35/-) as per GSTR-3B & GSTR-2A for the
impugned period is required to be recoverable from the them for contravention of Section 16
of the CGST/SGST, 2017 read with Section 20 of the IGST Act, 017 along with applicable
Interest.

3.0. Chapter V of both CGST & SGST Acts and CGST & SGST rules has detailed provisions
in respect of Input Tax credit. Within the said chapters, section 16 of both the CGST & SGST
Acts, 201 7 read with rule 36 of both of the CGST & SGST Rules, 201 7, prescribes eligibility
criteria, documentary requirements & conditions for taking/ claiming ITC. The extracts of
relevant provisions of the Act and rules made thereunder applicable into the instant case are
reproduced hereunder for ready reference.
3.1. Section 16 of CGST Act, 2017 - Eligibility and conditions for taking input tax credit:

(1) Every registered person shall, subject to such conditions and restrictions ................. .

(2) Notwithstanding anything contained in this section, no registered person shall be entitled to
the credit of any input tax in respect of any supply ofgoods or services or both to him unless, -

(a) he is in possession of a tax invoice or debit note issued by a supplier registered under this
Act, or such other tax paying documents as may be prescribed;

(b) he has received the goods or services or both.

[Explanation. -For the purposes of this clause, it shall be deemed that the registered person
has received the goods or, as the case may be, services-

(i) where the goods are delivered by the supplier to a recipient or any other person on
the direction of such registered person, whether acting as an agent or otherwise, before or
during movement ofgoods, either by way oftransfer ofdocuments oftitle to goods or otherwise;

(ii) where the services are provided by the supplier to any person on the direction of and
on account of such registered person.

(c) subject to the provisions of section 41 or section 43A, the tax charged in respect of such
supply has been actually paid to the Government, either in cash or through utilization of ITC
admissible in respect of the said supply; and

(d) he has furnished the return under section 39.

Provided .............................................. .
(3)
(4) A registered person shall not be entitled to take input tax credit in respect of any invoice or
debit note for supply ofgoods or services or both after the [thirtieth day ofNovember] 3 following
the end offinancial year to which such invoice or [inYoiee relating to s1:;1;eh} 2 debit note pertains
or furnishing of the relevant annual return, whichever is earlier.

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 date
entitled to take input tax credit ape r the due
/Provid~d _that the registered pers on shall be till the due date of
the month of September, 201 8
0
ffu,:nz~hzng ofthe return und er section 39 for of a_ny
ion for the month of March, 201 9 in respect
.(um~shing_ of t~e retu7:1- und er the said sect supply ofgoods or services or both ma~ e dun ng
invoice or i_nvozce relating to suc h debit note for suppli~r und er
the fina~czal yea r 2017-18, the details of which have been uploaded by the section (1) of
for furnishing the details und er sub-
su?-secti?n (1) of section 37 till the due date1
said section for the mon th of March, 2019.J
Tax date d 31.1 2.20 18
1 Inserted vide Order No. 02/ 201 8 -Central
). Effective from 1.1.2021
2 Omitted vide [Link] Act, 202 0 (12 of 2020
th
ishing of the return und er section 39 for the mon
3 Sub stitu ted for the wor ds "due date offurn e effectiv e from 1.10 .22
0.( September" vide Sec 100 of The Finance Act, 202 2 (6 of 2022). Mad
vide Not f 18/202 2-C T dt 28.9.2022.
ns for
Doc ume ntar y requ irem ents and con ditio
3.2. Rul e 36 of CGST Rul es, 201 7 -
clai min g inp ut tax cred it:
ice
(!) . The inpu t tax cr~dit sha ll be availed
by a registered person, including the Input Serv
documents, namely,-
Distributor, on the bas is of any of the following
the
ds or services or both in accordance with
(a) an invoice issu ed by the supplier of goo
provisions ofsection 31;
ion
provisions of clause (f} of sub-section (3) of sect
(b) an invoice issu ed in accordance with the
31, subj ect to the pay men t of tax;
rdance with the provisions of section 34;
(c) a deb it note issu ed by a supp lier in acco
rules
prescribed und er the Customs Act, 1962 or
(d) a bill of entr y or any similar document
grated tax on imports;
mad e ther eun der for the asse ssm ent of inte
t
t Service Distributor credit note or any documen
(e) an Inpu t Service Distributor invoice or Inpu rule (1) of rule
rdance with the provisions of sub-
issu ed by an Inpu t Service Distributor in acco
54.
ars
stered person only if all the applicable particul
(2) Input tax credit sha ll be availed by a regi
are contained in the said document.
as specified in the pro visi ons of Chapter VI
ains
contain all the specified particulars but cont
/Provided that if the said doc ume nt doe s not ly
ription of goods or services, total value of supp
the details of the amo unt of tax charged, desc supp ly in case of
lier and recipient and place of
of goods or serv ices or both, GSTIN of the supp
iled by suc h registered person.]
inter-State supp ly, inpu t tax credit may be ava
stered pers on in respect of any tax that has
(3) No inpu t tax credit sha ll be availed by a regi of any
any dem and has bee n confirmed on account
bee n paid in pur sua nce of any order whe re
offacts.
fraud, willful mis stat eme nt or sup pres sion
stered pers on in respect of invoices or debit
(4) /No inpu t tax credit sha ll be availed by a regi 37
be furn ishe d und er sub- section (1) of section
note s the details of whi ch are required to
unle ss,- the
s hav e bee n furn ishe d by the supplier in
(a) the details of suc h invoices or debit note ishi ng facility; and
R-1 or usin g the invoice furn
stat eme nt of outw ard sup plie s in FORM GST
been
ect of] 2 suc h invoices or debit notes have
(b) the details of {input tax credit in resp 60.J
M GSTR-2B und er sub-rule (7) of rule
communicated to the registered pers on in FOR
3 3
• d· Section 20 of the IGST Act, 2017: Application of provisions of Central Goods
an Services Tax Act: .

Subject to the provisions of this Act and the rules made thereunder, the provisions of Central
C?oods and Services Tax Act relating to, -
(iJ. scope of supply;
(~i). c~mposite supply and mixed supply;
(~ii) ~ime and value of supply;
(iv) input tax credit·,
(v) registration;
(vi) tax invoice, credit and debit notes;
(vii) accounts and records·,
(viii) returns, other than late fee;
(ix) payment of tax;
(x) tax deduction at source;
(xi} collection of tax at source;
(xii) assessment;
(xiii) refunds;
(xiv) audit;
(xv) inspection, search, seizure and arrest;
(xvi) demands and recovery;
(xvii) liability to pay in certain cases;
(xviii) advance ruling;
(xix) appeals and revision;
(xx) presumption as to documents;
(xxi) offences and penalties;
(xxii) job work;
(xxiii) electronic commerce;
(xxiv) transitional provisions; and
(xxv) miscellaneou s provisions including the provisions relating to the imposition of interest and
penalty, shall, mutatis mutandis, apply, so far as may be, in relation to integrated tax as they
apply in relation to central tax as if they are enacted under this Act:
Provided that in the case of tax deducted at source, the deductor shall deduct tax at the rate of
two per cent. from the payment made or credited to the supplier: •
[Link] her that in the case of tax collected at source, the operator shall collect tax at such
rate not exceeding two per cent, as may be notified on the recommenda tions of the Council, of
the net value of taxable supplies: .
Provided also that for the purposes of this Act, the value of a supply shall include any taxes,
duties, cesses, fees and charges levied under any law for the time being in force other than this
Act, and the Goods and Services Tax (Compensation to States) Act, if charged separately by the
supplier:
Provided also that in cases where the penalty is leviable under the Central Goods and Services
Tax Act and the State Goods and Services Tax Act or the Union Territory Goods and Services
Tax Act, the penalty leviable under this Act shall be the sum total of the said penalties.
l[Provided also that a maximum amount offorty crore rupees shall be payable for each appeal
to be filed before the Appellate Authority or the Appellate Tribunal.]

. 3.4. Section 73 of CGST Act, 2017:- Determinatio n of tax not paid or short paid or
erroneously refunded or input tax credit wrongly availed or utilized for any reason other than
fraud or any wilful misstatemen t or suppression of facts: -

(1) ¾!here it appears that any tax has not been paid or short paid or erroneously refunded, or

5/9
where input tax credit has been wrongly availed or utilized for any reason, other than the~
re~on of fraud or any willful-misstatement or suppression of facts to evade tax, shall serve
no~ce on the person chargeable with tax which has not been so paid or which has been so short
!
pa_z~ or 0 whom the refund has erroneously been made, or who has wrongly availed and
utiliz~d lnJ?Ut tax credit, requiring him to show cause as to why he should not pay the amount
sp~cified m the notice along with interest payable thereon under section 50 and a penalty
levzable under the provisions of this Act or the rules made there under.

(9) The prop~r officer shall, after considering the representation, if any, made by person
chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per
cent. of tax or ten thousand rupees, whichever is higher, due from such person and issue an
order.

3.5. Section 50 of CGST & OGST Acts' 2017; Interest on delayed payment of Tax:

(1) Every person who is liable to pay tax in accordance with the provisions of this Act or
the rules made there under, but fails to pay the tax or any part thereof to the Government
within the period prescribed, shall for the period for which the tax or any part thereof remains
unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be
notified by the Government on the recommendations of the Council.

[PROVIDED that the interest on tax payable in respect of supplies made during a tax
period and declared in the return for the said period furnished after the due date in
accordance with the provisions of Section 39, except where such return is furnished after
commencement of any proceedings under section 73 or section 7 4 in respect of the said
period, shall be payable on that portion of the tax which is paid by debiting the electronic cash
ledger.]

(2) The interest under sub-section (1) shall be calculated, in such manner as may be
prescribed, from the day succeeding the day on which such tax was due to be paid.

(3) Where the input tax credit has been wrongly availed and utilized, the registered person
shall pay interest on such input tax credit wrongly availed and utilized, at such rate not
exceeding twenty-four per cent. as may be notified by the Government, on the
recommendation of the council, and the interest shall be calculated, in such manner as may
be prescribed.
3.6. Section 122 of CGST & OGST Acts 2017;. Penalty for certain offences: -
(2) Any registered person who supplies any goods or services or bo~ on which any_tax has not
been paid or short-paid or erroneously refunded, or where the input tax credit has been
wrongly availed or utilized.

(a) for any reason, other than the reason of fraud or any wilful misstatement or
suppression of facts to evade tax, shall be liable to a penalty of ten thousand rupees or ten
percent of the tax due from such person, whichever is higher.

4.0 From the above provisions of the Statute, it is noticed that the Noticee have
contravened the provisions of Section 16 of the CGST / SGST Act, 2017 and correspon tling
Section 20 of the IGST Act, 2017 read with rule 36 of the CGST/ SGST Rules, 20 17 and
corresponding Section 20 of the IGST Act, 2017 by way of availing & utilizing excess Input Tax
6/9
r
Credit (ITC) to the tune of Rs. 5,05,584.15/- during the FY: 2020-21 as per the Input Tax
Credit (ITC) i.r.o 'All other ITC' in table 4(A)(5) of Form OSTR-3B and ITC of inward supplies in
Form GSTR-2A (Exel. RCM). Therefore, availment & utilization of such Input Tax Credit (ITC)
by the Noticee appears to be irregular /inadmissible and the same is required to be
recoverable under Section 73(1) of the Act along with interest under Section 50(1) of the
CGST/SGST Act, 2017 and corresponding Section 20 of the IOST Act, 2017. Further, the
Noticee is also liable to pay Penalty under Section 122(2)(a) of the COST/SOST Act, 2017 and
corresponding Section 20 of the IOST Act, 2017 read with Section 73( 1) of the COST/ SOST
Act, 2017 and corresponding Section 20 of the IOST Act, 2017, which is recoverable under
section 73( 1) of the COST/ SGST Act, 2017 and corresponding Section 20 of the IGST Act,
2017 for contravention of the provisions of the Act made thereunder.

5.0 Now, therefore, the Noticee, M/s. Passary Minerals Private Limited, Legal Name:
Passary Minerals Private Limited, Kumjharia, Kuarmunda, Bijabahal, Sundargarh, Odidha,
770039 having GSTIN-21AABCP0611Q1ZO is hereby called upon to show cause to the
Superintendent, GST & Central Excise, Kuarmunda Range, Rourkela-I Division, Sector - 21,
Naya Bazar, Rourkela, Sundargarh, Odisha - 769010 within 30 (thirty) days of receipt of this
notice as to why: -

(i) The excess Input Tax Credit (ITC) amounting to Rs.5,05,584.15/- (IGST of Rs.
4,17,901.45/- + CGST of Rs. 43,841.35/- + SGST of Rs. 43,841.35/-), as availed and utilized
as per the Input Tax Credit (ITC) i.r.o 'All other ITC' in table 4(A)(S) of Form GSTR-3B and ITC of
inward supplies in Form OSTR-2A (Exel. RCM), as discussed supra, should not be demanded
and recovered from them under provisions of Section 73 (1) of the COST/ SOST Act, 201 7 and
I
corresponding Section 20 of the IGST Act, 201 7;

(ii) Interest amount under Section 50(1) of the CGST /SGST Act, 2017 and corresponding
Section 20 of the IGST Act, 2017, for excess availing and utilization of ITC, as discussed supra
in above para, should not be demanded and recovered at (i) above.

(iii) Penalty should not be imposed on them under Section 122(2)(a) of the CGST /SGST Act,
2017 and corresponding Section 20 of the IGST Act, 2017 read with Section 73(1) of the
COST /IOST Act, 2017 and corresponding Section 20 of the IGST Act, 2017 for the
contravention of various provisions of the Act, on the tax demanded at (i) above;

6.0 Further, it is informed to the Noticee that in terms of sub-section (8) of Section 73 of
the COST/ SOST Act, 20 17 and corresponding Section 20 of the IGST Act, 201 7, if the tax
(GST) and the interest payable thereon under Section 50 of the Act, ibid, is paid by the Noticee
within 30 {thirty) days of issue of the instant show cause notice, no penalty shall be payable
by the Noticee and all proceedings in respect of the instant Notice shall be deemed to be
concluded.

1.0 .:oRtft <$) cfITT1JT ~ ~ ~ ~ ~ , ~ ~ ~ ~-"Q"af ~~cpl~~~, ~

7/9
 ,

. The Noti~ee while showing cause should produce all the evidences upon which ~t
intends to rely m support of its defence and it should also state in writing as to wheth er it
wishes to be heard in person, before the case is adjudicated.

If no cause is shown against the action proposed to be taken against it, within the
stipulated period, or if the Noticee or its legal / authorized representative, does not appear
before the adjudicating authority, on the date and time indicated above, the case may be
decided ex-parte, on the basis of the evidence available on record, without any further
reference being made to it.

This Show Cause Notice is issued, without prejudice to any other action that may be
taken against the Noticee under the CGST/SGST Act, 2017 and/or Rules made there under
or under any other law for the time being in force.

,ti&,ao1/Encls.: - As above.

( ~ •--""'s,,i\A~!s:::1
(~/Superi1tendent)
~~~~JtR~~/ ..J
Central GST & Central Excise
cf;Jllv1s1
..J ..J
t7f/Kuarmunda Range
,t 13,tc\;c>I 1/Rou rkela

Copy forwarded to:

1) The Assistant Commissioner, CGST & Central Excise, Rourkela-1 Division,
Sector-21 Nayabazar- 769010.

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