Sai Speed Medical Institute Pvt Ltd Vs Assistant Commissioner GST and Central Excise (Madras High Court)
The writ petition challenged an Order-in-Original dated 26.08.2024 confirming proposals raised in a show cause notice dated 15.05.2024 under the GST law. The confirmed demands related to four issues: (i) excess input tax credit (ITC) availed based on mismatch between GSTR-3B and GSTR-2A for FY 2019–20 amounting to ₹6,10,854; (ii) irregular availment of ITC under Section 16(4) of the CGST Act amounting to ₹44,21,912; (iii) non-payment of interest for belated GST payment and late filing of returns amounting to ₹11,14,737; and (iv) late fee for delayed filing of GSTR-9.
The Court noted that the demand relating to irregular ITC under Section 16(4) was no longer sustainable in view of the insertion of Section 16(5) by the Finance (No.2) Act, 2024, with retrospective effect from 01.07.2017. Consequently, the demand of ₹44,21,912 was held to be prima facie unsustainable.
With respect to the remaining issues, it was admitted that no reply had been filed to the show cause notice in DRC-01, though the late fee demanded had already been paid. The matter was therefore remitted back to the tax authority for fresh adjudication on the surviving issues.
