Hatsun Agro Product Ltd Vs Deputy Commissioner (ST) (Madras High Court)
Madras High Court held that order of assessment based on issuance of general notices calling for particulars is liable to be set aside.
Facts- The impugned order is one of assessment dated 17.03.2023, passed under the provisions of the Tamil Nadu Goods and Services Tax Act, 2017. The issue related to the reversal of Input Tax Credit (ITC), which, in the opinion of the Assessing Officer is ineligible and ought not to have been claimed.
Prior to the impugned order, which is a culmination of proceedings for assessment under Section 73 of the Act, the Assessing Authority had issued notices in DRC-01A and ASMT -10 calling for identical particulars as were required for the present impugned proceedings as well.
A perusal of impugned order makes it clear that it is only in order that AO has embarked on the determination/ crystallisation of the amount to be reversed on a comparison of the ITC claimed under GSTR 3B and GSTR 2B.
Conclusion- This determination of amount to be reversed, in the considered view of the Court, ought to have been put to the petitioner in the show cause notice itself before passing of the impugned order, such that the petitioner had been afforded sufficient opportunity to respond the same and, or provide details in support of the claim of ITC.
Prior to the impugned order of assessment, what was exchanged was only general notices calling for particulars to which the petitioner is seen to have responded, albeit, insufficiently.
Thus, and in the interests of substantial justice, the impugned order of assessment dated 17.03.2023 is set aside and shall be treated as a show cause notice by the petitioner, who shall appear along with all details in support of the reversal under the impugned order on Thursday, the 13th July 2023, at the specific request of the counsel for the petitioner, without expecting any further notice in this regard.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Mr. V. Prashanth Kiran, learned Government Advocate accepts notice for the respondents and is armed with instructions to enable a final disposal of this matter, even at the stage of admission.
2. The impugned order is one of assessment dated 17.03.2023, passed under the provisions of the Tamil Nadu Goods and Services Tax Act, 2017 (in short ‘Act’). The issue relates to reversal of Input Tax Credit (ITC), which, in the opinion of the Assessing Officer is ineligible and ought not to have been claimed.
3. Prior to the impugned order, which is a culmination of proceedings for assessment under Section 73 of the Act, the Assessing Authority had issued notices in DRC-01A and ASMT -10 calling for identical particulars as were required for the presnt impugned proceedings as well.
4. While it is the petitioner’s case that those particulars have been supplied, learned Government Advocate would submit that the particulars have to be supplied in a tabulation that was specifically put to the petitioner.
5. To be noted, the manner in which the respondent has sought the information along with supporting particulars incuding invoices is clearly set out in communication dated 09.09.2022 as follows:
Inward Supplies – (GSTR 2B Vs. GSTR -3B):
