Taxpayer wins partial relief as GST demand upheld for missing invoices but IGST demand quashed The Madras HC partially allowed a writ petition challenging GST demand and penalty. The court upheld denial of input tax credit (ITC) for five invoices ...
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Taxpayer wins partial relief as GST demand upheld for missing invoices but IGST demand quashed
The Madras HC partially allowed a writ petition challenging GST demand and penalty. The court upheld denial of input tax credit (ITC) for five invoices where the taxpayer failed to produce genuine tax invoices during audit, providing only illegible copies. Additionally, ITC was denied for three invoices not reflected in GSTR-2A, indicating suppliers hadn't uploaded them in GSTR-1 or paid GST. However, following Supreme Court precedent in Mohit Minerals case, the court ruled in favor of the petitioner regarding IGST demand and interest totaling Rs. 1,50,402 under relevant CGST and IGST Act provisions.
Issues: Challenge to Order-in-Original on GST liability, ITC eligibility, and penalty imposition.
GST Liability: The petitioner contested an Order-in-Original demanding GST on ocean freight and ITC availed during a specific period. The court found the demand for GST on ocean freight to be covered by a Supreme Court judgment and ruled in favor of the petitioner, leading to the dismissal of this part of the demand.
ITC Eligibility: The court examined the petitioner's inability to produce clear invoices for ITC availed, noting discrepancies between GSTR-3B and GSTR-2A. The court upheld the demand for wrong availment of ITC and interest, as the petitioner failed to provide clear invoices, leading to the dismissal of this part of the demand.
Penalty Imposition: A penalty was imposed under relevant sections of the CGST Act for non-compliance. The court considered arguments from both sides but ultimately upheld the penalty imposition, dismissing the petitioner's contentions.
Judicial Review: The court partially allowed the Writ Petition, dismissing certain demands while upholding others. The petitioner was granted the liberty to file a statutory appeal within 30 days. The petitioner was also advised to obtain certificates from suppliers to support contingent invoices. The judgment concluded by closing the connected Miscellaneous Petition without costs.
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