2026 (2) TMI 1198

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....dent. 3. The Petitioner is before this Court against the impugned Order dated 25.09.2024 in Form GST DRC-07 passed for the tax period 2022-23 under Section 74 of the respective GST Enactments, whereby, the proposal in the Show Cause Notice dated 04.06.2024 has been confirmed against the petitioner. The petitioner failed to reply to the Show Cause Notice dated 04.06.2024 and thus suffered the impugned Order. 4. It is submitted by the learned counsel for the Petitioner that the dispute has arisen purely on account of Input Tax Credit availed with regard to the Motor Vehicle stated to have purchased by the Petitioner during the March, 2023. 5. It is the specific case of the learned counsel for the Petitioner that the credit that was a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the respective GST Enactments or interest under Section 50 of the respective GST Enactments. 9. The learned counsel for the Petitioner has also drawn the attention of this Court to a decision of this Court in Refex Industries Ltd. And others Vs. The Asst. Commissioner of CGST & Central Excise, Maraimalai Nagar Division and others) reported in 2020 (34) GSTL 588 : 2020 74 GSTR 274 (Mad) wherein, it has been held as under:- "11. The Section provides for interest on belated payment of tax and as held by the third Judge, such levy is 'automatic', and is intended to compensate the revenue for the remittance of tax belatedly and beyond the time frames permitted under law. Though in the context of the Income Tax Act, 1961, the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....belated nor delayed. 13. The argument that ITC is liable to be reversed if it is found to have been erroneously claimed, and that it may be invalidated in some situations, does not militate with my conclusion as aforesaid. The availment and utilization of ITC are two separate events. Both are subject to the satisfaction of statutory conditions and it is always possible for an Officer to reverse the claim (of availment or utilization) if they are found untenable or not in line with the statutory prescription. Credit will be valid till such time it is invalidated by recourse to the mechanisms provided under the Statute and Rules. 14. I am supported in my view by a recently inserted proviso to Section 50(1) reading as below: ....