2024 (9) TMI 601 - HC - GST

Tax Recovery Notices Quashed: Input Tax Credit Restored for 2017-2019 Assessment Years with Directive for Fresh Order

HC Madras allowed writ petitions challenging tax recovery notices for Assessment Years 2017-2018 and 2018-2019. Court set aside recovery notices, granted ... Recovery of arrears of tax - Assessment Years 2017-2018 and 2018-2019 - non-filing of returns - petitioner had earlier suffered Assessment Orders under Section 62 of the Tamil Nadu Goods and Services Tax Act, 2017, which was wrongly mentioned as Section 63 of the Tamil Nadu Goods and Services Tax Act, 2017 on 20.09.2019 - grant of benefit of Input Tax Credit as per recent amendments - HELD THAT:- The Finance Bill was presented on 23.07.2024 before the Parliament. The Finance Bill was also passed into Act as a result of which, the proposals in Clause 114 of the Finance Bill has been passed as Section 114 of the Finance Act, 2024 - As a consequence of the above amendment, Sections 16(5) and 16(6) of the Central Goods and Services Tax (CGST) Act have been incorporated. Similar amendments are expected by the Tamil Nadu State Legislature to insert Sections 16(5) and 16(6) of the Tamil Nadu Goods and Services Tax Act, 2017. As per the decision of the Hon'ble Supreme Court in FORMICA INDIA DIVISION VERSUS COLLECTOR OF CENTRAL EXCISE [1995 (3) TMI 98 - SUPREME COURT], once the tax is demanded, the benefit of Input Tax Credit has to be granted. The Impugned Recovery Notices can be set aside and the case be remitted back to the respondents to pass a fresh order - Petition allowed by way of remand. The High Court of Madras disposed of two writ petitions challenging recovery notices for tax arrears from Assessment Years 2017-2018 and 2018-2019. The court set aside the recovery notices due to the petitioner not filing returns and granted the benefit of Input Tax Credit as per recent amendments. The case was remitted back to the respondents for a fresh order within six months.