Taxpayer's Challenge to GST Revenue Recovery Notice Fails Due to Procedural Lapses and Missed Statutory Timelines

HC dismissed writ petition challenging GST revenue recovery notice. The court found the petitioner's failure to utilize statutory remedies under CGST Act within prescribed timelines and noted wilful negligence in rectifying excess Input Tax Credit. No exceptional circumstances warranted extraordinary judicial intervention under Article 226, thus petition was rejected.

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Issues involved:
The judgment involves the challenge to proceedings passed under the GST Act regarding the availing of excess Input Tax Credit (ITC) by a partnership firm engaged in the supply of plastic tubes and fittings.

Summary:

Issue 1: Availing of excess Input Tax Credit (ITC)
The petitioner, a registered dealer under the GST Act, was alleged to have availed excess ITC in contravention of Section 16(2)(c) of the CGST Act. The petitioner contended that the error occurred due to inadvertence while filing GSTR 3B and had already reversed the excess ITC amount. The petitioner submitted Ext.P3 GST Form B to rectify the error, but the second respondent issued a revenue recovery notice. The petitioner argued that the proceedings were passed without proper scrutiny and sought to quash the orders.

Issue 2: Remedies and Time-barred appeal
The respondents argued that the petitioner failed to submit the ASMT 10 form and rectify the errors within the stipulated time under the CGST Act. The respondents contended that the impugned orders were appealable under Section 107 of the CGST Act, but the remedy was time-barred. The Court found wilful negligence on the part of the petitioner for not availing statutory remedies and challenging the orders in appeal within the prescribed time. The Court emphasized the importance of filing a writ petition within a reasonable time and declined to entertain the petition due to the petitioner's failure to exhaust statutory remedies.

In conclusion, the Court dismissed the writ petition, stating that the petitioner's failure to utilize statutory remedies cannot be remedied through a writ petition filed after the prescribed time. The Court highlighted that its extraordinary powers are to be sparingly exercised and found no exceptional circumstances to entertain the petition under Article 226 of the Constitution of India.

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