TNGST assessment disputes on input tax credit and penalty sent back for fresh reconsideration

An assessment order under the TNGST Act, 2017 dealing with reconciliation discrepancies, input tax credit issues, interest and penalty was set aside and remanded for fresh consideration. The Court treated the objections on penalty and interest as involving mixed questions of fact and law, noted that the assessee had reversed the CESS amount and raised specific statutory objections, and found the matter suitable for reconsideration by the original authority rather than relegation to the appellate remedy. The entire issue was therefore sent back for fresh decision on the merits.

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Issues: Whether the impugned assessment order under the TNGST Act should be set aside and the matter remanded for fresh consideration.

Analysis: The dispute arose from an assessment order passed under Section 73 of the TNGST Act, 2017, involving reconciliation discrepancies, input tax credit issues, and levy of interest and penalty. The Court noted that the questions regarding penalty and interest involved mixed questions of fact and law. It further observed that the petitioner had reversed the CESS amount and had raised specific objections with reference to the statutory provisions relied upon. In these circumstances, instead of directing the petitioner to pursue the appellate remedy, the matter was considered fit to be sent back to the original authority for reconsideration of the entire issue.

Conclusion: The impugned order was set aside and the matter was remanded to the respondent for fresh consideration.

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