Surya Textile Vs Superintendent of GST and Central Excise (Madras High Court)
The Madras High Court dealt with a writ petition filed by a registered dealer under the Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017 challenging an order passed by the respondent department reversing the petitioner’s Input Tax Credit (ITC) claim and directing payment of tax, penalty, and interest.
During the hearing, both the petitioner and the respondent submitted that the issue involved in the writ petition had already been covered by a common order dated 17.10.2024 passed by the High Court in a batch of writ petitions. The Court therefore relied upon the principles laid down in that earlier decision.
In the earlier batch matters, the petitioners were registered dealers who had filed GSTR-1 returns within time. However, due to difficulties such as financial constraints arising from the Covid-19 lockdown, health-related ailments, and fire accidents, they were unable to file GSTR-3B returns within the prescribed period and consequently could not raise their ITC claims in time. The respondent department issued show cause notices proposing reversal of ITC and subsequently passed orders confirming the proposals, directing payment of tax, penalty, and interest.
