GST Input Tax Credit Reversal Within Three-Year Limitation Period Under Section 73(10) Upheld as Procedurally Valid

The HC dismissed a writ petition challenging GST Input Tax Credit reversal, ruling that the assessment order was passed within the three-year limitation period under Section 73(10) of TNGST Act. The court determined that substantive issues regarding documentation should be addressed through the statutory appeal mechanism under Section 107, not via writ jurisdiction. The petitioner was granted two weeks to file an appeal before the appellate authority, with the court noting that failure to do so would subject them to the limitation consequences prescribed in the Act.

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Issues:
1. Challenge to the reversal of Input Tax Credit under the GST regime.
2. Interpretation of Section 73(10) of the TNGST Act, 2017 regarding the time limit for passing orders.
3. Availability of original documents to support the claim for Input Tax Credit.
4. Argument on limitation period for challenging the impugned order.
5. Whether the appellate authority should decide on the merits of the case.

Analysis:
The petitioner challenged the reversal of Input Tax Credit through a Writ Petition, contending that the assessing officer should have passed an order within three years from the due date for furnishing the annual return. The petitioner argued that the impugned order was infirm due to the limitation period expiring. However, the Government Advocate argued that the order was passed within the three-year period, saving it from being time-barred.

Regarding the availability of original documents to support the claim, the petitioner asserted readiness to submit them before the assessing authority. The Government Advocate highlighted that the appellate authority could decide on such issues, emphasizing the missed opportunity by the petitioner to file an appeal within the prescribed timeline.

The Court acknowledged the submissions from both sides and ruled that the limitation point raised by the petitioner was not valid as the order was passed within the stipulated period. The Court also clarified that the merits of the case, including document submission, should be addressed by the appellate authority through the appeal process under Section 107 of the Act.

Consequently, the Court dismissed the Writ Petition, stating that the impugned order could be challenged through an appeal before the appellate authority. The petitioner was granted liberty to file such an appeal within two weeks, failing which they would face consequences due to the limitation period specified in the Act and rules. The judgment concluded with the dismissal of the Writ Petition without costs, and the connected Miscellaneous Petitions were closed.

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