2025 (3) TMI 319 - HC - GST

Tax Credit Dispute Resolved: Appellate Authority Ordered to Review GST Claims Within 90 Days of Hearing

M/s. Madurai Radha Travels, A Partnership Firm, Represented by its Partner RVN. Kannan Versus Assistant Commissioner (ST) (FAC), Madurai

HC ruled on GST dispute involving transportation business. Court directed appellate authority to review tax credit and GST payment claims within three ... Seeking to quash the proceedings of the respondent, consequential order and consequential attachment notice - wrongful availment of Input tax credit - short payment of GST - HELD THAT:- This Court directs the Joint Commissioner of CGST and Central Excise (Appeals), Coimbatore at Madurai, to consider the appeal [Appeal No.372 of 2024] filed by the petitioner on merits and pass appropriate orders in accordance with law, after giving due opportunity to the petitioner, within three months from the date of receipt of a copy of this order. Petition disposed off. The issues presented and considered in the judgment are as follows:1. Whether the petitioner wrongfully availed tax credits and short-paid GST for the period from 2017 to 2021.2. Whether the proceedings of the respondent in DRC - 07 for the year 2017-2018, and the consequential orders passed under Section 73 of the Goods and Services Tax Act 2017, are valid.3. Whether the attachment notice in Form DRC-13 in GSTIN - 33ABAFM3706A1Z2/2017-18, dated 27.01.2025, is lawful.Issue-wise detailed analysis:The petitioner, engaged in the business of operating staff buses for corporate companies and inter-city routes, had been paying GST under the CGST and SGST slabs and availing input tax credits. A show cause notice was issued alleging wrongful tax credits and short-paid GST for the period from 2017 to 2021. The petitioner challenged the notice through various writ petitions and obtained interim stays. The respondent issued subsequent notices and orders leading to the present Writ Petition seeking to quash the proceedings and consequential orders.The Court directed the appellate authority to consider the petitioner's appeal on its merits and pass appropriate orders within three months, keeping the respondent's orders in abeyance.Significant holdings:The Court directed the appellate authority to consider the appeal on its merits and pass appropriate orders within three months, while keeping the respondent's orders in abeyance. The Court emphasized that it had not expressed any views on the merits of the matter, leaving it to the appellate authority to decide independently.In conclusion, the Court disposed of the Writ Petition without costs, instructing the appellate authority to review the appeal and make decisions within a specified timeframe.