TaxTMI 
TaxTMI 
2026 (1) TMI 840
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....e petitioners' appeal against an order dated April 30, 2024 passed under Section 73 of the said Act of 2017 has been dismissed. 2. Alleging, inter alia, short payment of output tax and excess availment of ITC on import of goods, a notice under Section 73 of the said Act of 2017 had been issued to the petitioners calling upon the petitioners to show-cause as to why tax as indicated in the said notice along with up to date interest would not be charged on the petitioners and penalty shall not be payable by the petitioners due to their failure to pay appropriate tax and due to availment of excess Input Tax Credit (hereafter "ITC") on import of goods by them. 3. The petitioners furnished a detailed reply to the notice to show-cause whereu....
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....mitted that the appellate order was passed ex-parte since the petitioners missed the opportunity to appear before the appellate authority and the petitioners could not place their case before the appellate authority. 9. Mr. Tanoy Chakraborty, learned Advocate appearing for the State GST authorities, supports the order impugned. 10. Heard learned Advocates for the respective parties and considered the material on record. 11. Since the issue of excess availment of ITC on import of goods which is involved in the present case centered around payment of IGST and non-production of certified documents from the customs authority to evince such payment of IGST, this Court directed the customs authorities to file a report in the form of an a....
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.... Charge" in the ICES system. Upon receipt and verification of such documents, "Out of Charge" has already been successfully granted in the ICES system in respect of five (05) Bills of Entry and the post clearance data has also been entered in ICES System, details whereof are annexed hereto (Table - 1)." 13. On the same date i.e. on January 7, 2026 an additional report was also filed by the Customs Authorities (which is not by way of Affidavit) which states as follows: "Now, it to submit that after receipt and verification of the documents, the necessary action has been taken for all the eight (08) manual bills of entry. And it has been confirmed by the petitioner i.e M/s Amar Iron Udyog that the details in respect of all the eig....
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....e aforesaid reports and then take appropriate independent decision in accordance with law. 18. Insofar as the second contention of the petitioners regarding reversal of ITC due to the failure of the petitioners' suppliers to file returns is concerned, although the petitioners could have been granted an opportunity to voice their case before the appellate authority for ends of justice without much ado, yet since the petitioners have not been able to satisfactorily explain as to why the petitioners missed the opportunity to represent their case before the appellate authority despite the same being granted, therefore, the appellate authority's conclusion regarding reversal of ITC due to non-filing of returns of the suppliers shall only be p....