2024 (2) TMI 653 - HC - GST

High Court Suspends GST Show Cause Notice, Halts Recovery Proceedings for Tax Credit Dispute Involving Rs. 27.5 Lakh Claim

M/s. Surya Business Private Limited Versus The State Of Assam, The Assistant Commissioner Of State Tax, The Commissioner Of State Taxes Guwahati, M/s. Atikur Rahman

HC granted interim relief against GST show cause notice challenging ITC recovery of Rs. 27,25,503/-. Court directed respondents to withhold action on ... Recovery of excess ITC claimed - petitioner had availed ITC on valid tax invoices raised by the supplier and had also made payment of taxes to the supplier - HELD THAT:- The matter would require further examination - As sought by the learned counsel for the parties, list the case on 22.02.2024. Having regard to the submissions of the learned counsel for the petitioner, it is observed that the respondents shall not act upon the impugned Show Cause Notice dated 11.01.2024 till the next date of listing. Issues involved: Challenge to Show Cause Notice u/s 73 r/w Section 50 of Assam GST Act, 2017 for recovery of Input Tax Credit (ITC) excess claimed for the period 2018-2019.Summary:The petitioner challenged a Show Cause Notice dated 11.01.2024, seeking recovery of Rs. 27,25,503/- as ITC excess claimed, along with interest and penalty, under Section 73 r/w Section 50 of the Assam GST Act, 2017. The petitioner contended that the ITC was availed on valid tax invoices and taxes were duly paid to the supplier, citing precedents from the Hon'ble Supreme Court and the Calcutta High Court. On the other hand, the respondent, through the Standing Counsel, relied on Circular no. 183/15/2022, specifically Clause 4.1.1. The Court noted the need for further examination and scheduled the case for a later date, directing that the respondents shall not take action on the Show Cause Notice until the next hearing on 22.02.2024.