2023 (6) TMI 834 - HC - GST

Assessment order reversing ITC set aside for lack of specific show cause notice details under relevant tax rules

M/s. Hatsun Agro Product Ltd. Represented by its Director D. Sathyanarayan Versus The Deputy Commissioner (ST) – II, The Deputy Commissioner (CT) – LTU, State Tax Officer

The HC set aside the impugned assessment order reversing ITC, holding that the Assessing Officer failed to specify the exact particulars and basis for ... Reversal of Input Tax Credit (ITC) - Availing ineligible input tax credit (ITC) - Necessary particulars as demanded were supplied or not - While it is the petitioner's case that those particulars have been supplied, learned Government Advocate would submit that the particulars have to be supplied in a tabulation that was specifically put to the petitioner - HELD THAT:- It is unclear as to whether the particulars have been supplied in this specific manner and whether the entirety of the supporting documents have been produced before the Assessing Officer - However, a perusal of the impugned order makes it clear that it is only in paragraph 5 onwards that the Assessing Officer has embarked on the determination/crystallisation of the amount to be reversed on a comparison of the ITC claimed under GSTR 3B and GSTR 2B. This determination, in the considered view of the Court, ought to have been put to the petitioner in the show cause notice itself prior to passing of the impugned order, such that the petitioner had been afforded sufficient opportunity to respond the same and, or provide details in support of the claim of ITC - Prior to the impugned order of assessment, what was exchanged was only general notices calling for particulars to which the petitioner is seen to have responded, albeit, insufficiently. Thus, and in the interests of substantial justice, impugned order of assessment dated 17.03.2023 is set aside and shall be treated as a show cause notice by the petitioner, who shall appear along with all details in support of the reversal under the impugned order on Thursday, the 13th July, 2023, at the specific request of the learned counsel for the petitioner, without expecting any further notice in this regard - This Writ Petition stands disposed off. Issues involved:The judgment involves the issue of reversal of Input Tax Credit (ITC) under the Tamil Nadu Goods and Services Tax Act, 2017.Details of the Judgment:Issue 1: Reversal of Input Tax Credit (ITC)The impugned order dated 17.03.2023, passed under the Tamil Nadu Goods and Services Tax Act, 2017, concerns the reversal of Input Tax Credit claimed by the petitioner, deemed ineligible by the Assessing Officer.Prior to the impugned order, the Assessing Authority had issued notices calling for particulars necessary for the assessment proceedings. The petitioner contends that the required particulars were supplied, but the Government Advocate argues that the information must be presented in a specific tabulation format as requested.The communication dated 09.09.2022 outlined the manner in which the respondent sought information, including a detailed comparison of ITC as per GSTR-3B and GSTR-2B. However, it remains unclear whether the particulars were supplied in the specific format requested and if all supporting documents were provided to the Assessing Officer.The Court notes that the determination of the amount to be reversed was initiated only in paragraph 5 of the impugned order. The Court opines that this determination should have been communicated to the petitioner in the show cause notice before the order was passed, allowing the petitioner an opportunity to respond and provide supporting details for the ITC claim.In the interest of substantial justice, the impugned order of assessment dated 17.03.2023 is set aside, to be treated as a show cause notice by the petitioner. The petitioner is directed to appear with all necessary details in support of the reversal on a specified date, without further notice. The hearing is scheduled for 13.07.2023, considering the age of the petitioner's authorized representative, a super senior citizen.No adjournment will be entertained on the hearing date, and failure to appear with the required materials will result in the withdrawal of the benefit granted under the order. Following the hearing and consideration of materials supplied, if any, an order is to be passed within six weeks from the date of the personal hearing, on or before 25.08.2023.The Writ Petition is disposed of with no costs, and connected Miscellaneous Petitions are closed.