Meenakshi Collections Vs Assistant Commissioner (ST) (Madras High Court)
Material Facts
The petitioner challenged an order dated 12.08.2024 confirming a demand for wrongful availment of Input Tax Credit (ITC), along with a 100% penalty under Section 74 and interest at 18% under Section 50 of the GST enactments. The dispute related to Assessment Year 2017-18. The impugned order was passed pursuant to a show cause notice in DRC-01 dated 20.06.2023 issued under Section 74, which had been preceded by an intimation in DRC-01A dated 25.03.2023.
The petitioner submitted that the tax amount had been paid on 22.07.2024 but sought waiver of interest and penalty and requested that the matter be remitted for fresh consideration on merits.
Procedural History
The proceedings commenced with DRC-01A dated 25.03.2023, followed by a DRC-01 show cause notice dated 20.06.2023 under Section 74. Thereafter, the respondent passed the impugned order dated 12.08.2024 confirming the tax demand together with interest and penalty, which was challenged before the High Court.
Legal Issues
- Whether the petitioner was liable to interest under Section 50 and penalty under Section 74 where ITC had been availed on invoices that were not reflected in Form GSTR-2A.
- Whether the matter required reconsideration in light of Circular No. 183/15/2022-GST dated 27.12.2022 regarding GSTR-2A discrepancies during the initial years of GST implementation.
Relevant Statutory Provisions
- Section 16 of the GST enactments
- Section 41
- Section 50
- Section 74
- Circular No. 183/15/2022-GST dated 27.12.2022
- Notification No. 79/2020 dated 15.10.2020
Petitioner’s Submissions
