Tax Credit Dispute: HC Permits Appeal with 10% Deposit, Mandates 3-Month Resolution for Fair Hearing and Compliance

GST dispute involving input tax credit mismatch. HC allowed petitioner to file statutory appeal before Appellate Commissioner within 30 days, subject to depositing 10% disputed tax. Order directed appeal be decided on merits within 3 months, providing procedural relief while maintaining tax compliance mechanism.

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Issues Involved: Challenge to impugned order in Original No.05/2023-GST dated 29.08.2023 u/s 73(1) of the CGST Act, 2017, interest u/s 50(3) of the CGST Act, 2017, penalty u/s 73(9) of the CGST Act, 2017/Tamil Nadu GST Act, 2017 read with Section 122 of CGST Act, 2017/Tamil Nadu GST Act, 2017.

Impugned Order Details:
- The respondent confirmed demand amount of Rs. 27,66,596/- as ineligible input tax credit due to mismatch between GSTR-3B and GSTR-2A returns u/s 73(1) of the CGST Act, 2017.
- Interest at 18% per annum was imposed on the confirmed amount u/s 50(3) of the CGST Act, 2017.
- A penalty of Rs. 2,76,660/- was levied u/s 73(9) of the CGST Act, 2017/Tamil Nadu GST Act, 2017 read with Section 122 of CGST Act, 2017/Tamil Nadu GST Act, 2017.

Petitioner's Challenge:
- The challenge to the impugned order was based on it being issued in the wrong name of M/s.Dhanalakshmi Srinivasan Charitable and Educational Trust instead of Srinivasan Charitable and Educational Trust.
- The petitioner raised this issue in a reply to the show cause notice and during a personal hearing with the respondent.
- The petitioner claimed the impugned order was unnoticed on the GST common portal until they received a threat from the respondent to pay the amount.

Court's Decision:
- The Court allowed the petitioner to file a statutory appeal before the Appellate Commissioner within 30 days from receiving a copy of the order, upon depositing 10% of the disputed tax.
- The appeal would be entertained under Section 107 of the GST Act, 2017 and decided on merits within three months, with the petitioner being heard.
- The Writ Petition was disposed of with the above directions, and no costs were awarded.

Conclusion:
The Court granted the petitioner the opportunity to appeal the impugned order before the Appellate Commissioner, provided they comply with the deposit requirement, ensuring a fair hearing and decision within a specified timeframe.

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