Key Tax Credit Dispute Resolved: GST Assessment Order Upheld After Appellant Fails to Substantiate Input Tax Credit Challenge

The SC upheld the assessment order under CGST Act, rejecting the appellant's challenge to excess input tax credit claim. The court found no procedural irregularities in the 1st respondent's order and dismissed the rectification application under section 161 of GST Act. The appellant failed to contest initial notices or provide substantive evidence, leading to the appeal's dismissal.

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Issues: Challenge to assessment order under CGST Act for excess input tax credit claim and rejection of rectification application under GST Act.

Summary:

Issue 1: Challenge to assessment order under CGST Act for excess input tax credit claim
The appellant, a business owner, challenged the assessment order issued by the 1st respondent under section 73(1) of the CGST Act for claiming excess input tax credit. Despite notices and opportunities for response, the appellant did not contest the discrepancies in the claim. The learned Single Judge dismissed the writ petition, prompting the appellant to appeal Exts. P1 and P5 orders before the appellate authority.

Details:
The appellant, as the proprietrix of a business, was found to have claimed excess input tax credit under the CGST/SGST Acts for the financial year 2017-18. The 1st respondent initiated proceedings under section 73(1) of the CGST Act after verifying the appellant's returns. The assessment led to a direction for the appellant to remit the excess credit with interest and penalty. The appellant then submitted a rectification application under section 161 of the GST Act, which was rejected by the 1st respondent. The appellant contended that the rectification should have been allowed based on a return filed in April 2018. However, the court found that the appellant did not contest the discrepancies earlier and did not respond to the notices or avail the opportunity for a personal hearing.

Issue 2: Rejection of rectification application under GST Act
The appellant sought a review of the assessment order, claiming a rectifiable error under section 161 of the GST Act. However, the court held that rectification is only permissible for errors apparent on the face of the record, especially in contested cases. Since the appellant did not contest the show cause notice or the assessment, the order was treated as agreed, making a rectification application unsuitable.

Conclusion:
The court found no merit in the appeal and dismissed it, directing any statutory appeal against the assessment orders to be independently considered by the appellate authority on its merits.

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