2024 (12) TMI 921 - HC - GST

Tax Assessment Challenge Overturned: Petitioner Granted Two-Week Window to Submit Reconciliation Documents and Raise Objections

Prabha Automotive Engineers Pvt. Ltd (Successor to the erstwhile firm Prabha Engineers) Represented by its Managing Director Mr. S. Kubher Versus Deputy Commissioner (ST) -II, Chennai

Prabha Automotive Engineers Pvt. Ltd (Successor to the erstwhile firm Prabha Engineers) Represented by its Managing Director Mr. S. Kubher Versus Deputy ... Issues:Challenge to impugned order relating to assessment year 2017-18 based on excess availment of Input Tax Credit in GSTR-9C.Analysis:The petitioner, engaged in the manufacture of auto components and registered under the Goods and Services Act, challenged the impugned order passed by the respondent regarding the assessment year 2017-18. The issue arose when there was an excess availment of Input Tax Credit compared to the Input Tax Credit reported in the annual return in GSTR-9. A notice was issued to the petitioner, followed by a proposal to levy tax on the non-reconciled amount. The petitioner responded by indicating that filling up S.No.14 in GSTR-9C was not mandatory, leading to certain columns being left unfilled. Subsequently, the petitioner reconciled the ITC as per Entry 14 of Form GSTR-9C and submitted the necessary documents.The petitioner contended that the impugned order proceeded on the basis that the petitioner had not filed the ITC register or purchase invoices to substantiate their claim. It was argued that the respondent authority should have notified the petitioner if the documents filed were inadequate. The petitioner claimed that they were willing to provide the necessary documents if intimated. The petitioner highlighted that they had already submitted sample invoices due to the voluminous nature of the total invoices and were prepared to furnish specific invoices upon request. The petitioner argued that the impugned order violated principles of natural justice as they were not informed of the need to provide documents for all transactions.The Court set aside the impugned order and directed the petitioner to treat it as a Show Cause Notice. The petitioner was instructed to submit objections within two weeks along with a reconciliation statement and supporting documents. The respondent was to consider any objections filed and pass orders accordingly after providing a reasonable opportunity for a hearing. Failure to file objections within the stipulated period would result in the restoration of the impugned order. The writ petition was disposed of with no order as to costs, and connected miscellaneous petitions were closed.