2024 (10) TMI 1031

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....y, Advs. for R-3 ORDER PER CM APPL. 57701/2024 (Exemption) Allowed, subject to all just exceptions. Application stands disposed of. W.P.(C) 13769/2024 & CM APPL. 57700/2024 (Interim relief) 1. Notice. Since the respondents are represented by Mr. Jaitley, Ms. Narain and Mr. Singh, let a reply be filed within a period of six weeks. The petitioner shall have two weeks therefrom to file a rejoinder affidavit. 2. The challenge which the writ petitioner mounts is to Circular No. 212/6/2024-GST dated 26 June 2024 [Impugned Circular] issued by the Central Board of Indirect Taxes and Customs [CBIC] as well as the Show Cause Notice [SCN] dated 02 August 2024. 3. Although the impugned SCN seeks to examine various aspects, Mr. D....

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....by the supplier to the recipient, by issuance of a tax credit note as per section 34 of the CGST Act, after the supply has been effected, the said discount can be excluded from the value of taxable supply only if the conditions of clause (b) of sub-section (3) of section 15 of the CGST Act are fulfilled. Such conditions inter alia includes the requirement of reversal of input tax credit by the recipient attributable to the said discount. 2.3 However, there is no system functionality/ facility presently available on the common portal to enable the supplier or the tax officer to verify the compliance of the said condition of proportionate reversal of input tax credit by the recipient. 2.4 In view of the above, till the time ....

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...., audit, investigations, etc. Even for the past period, where ever any such evidence as per section 15 (3) (b)(ii) of CGST Act in respect of credit note issued by the supplier for post-sale discounts is required to be produced by him to the tax authorities, the concerned taxpayer may procure and provide such certificates issued by CA/CMA or the undertakings/ certificates issued by the recipients of supply, as the case may be, to the concerned investigating/audit/adjudicating authority as evidence of requisite reversal of input tax credit by his recipients." 5. The CBIC appears to have taken into consideration a functionality handicap besetting the online portal and software as a consequence of which the respondents are stated to be unabl....