Tvl. Nimo Productions Vs Assistant Commissioner (ST) (FAC) (Madras High Court)
The writ petition challenged an order dated 19.02.2025 passed pursuant to a Show Cause Notice dated 26.11.2024. The petitioner was issued reminders on 24.01.2025, 15.02.2025, and 15.03.2025 but did not file any reply, resulting in confirmation of the impugned order.
Based on departmental information, records, and data, the order confirmed defects mentioned in the Show Cause Notice under two principal heads. First, excess claim of Input Tax Credit (ITC) was alleged due to non-reconciliation of information declared in GSTR-3B. It was observed that ITC had not been correctly availed upon reconciliation of turnovers in GSTR-3B, and that excess ITC was availed compared to the tax declared by suppliers in their GSTR-1 returns. Supplier filings up to September of the following financial year and the applicable cut-off date of 30 November 2021 for FY 2020–21 were considered.
Second, invalid ITC under Section 16(4) of the CGST and SGST Acts, 2017 was confirmed. The provision restricts availment of ITC after the due date of furnishing the return under Section 39 for September of the relevant financial year. For FY April 2020 to March 2021, the due date was 30 November 2021. The Department found that ITC was availed after this date for returns filed in April 2022 for tax periods November 2020 to February 2021, detailing the amounts claimed under SGST and CGST.
