Case Law Details
Surya Business Private Limited Vs State of Assam (Gauhati High Court)
Introduction: In a recent development, the Gauhati High Court has granted an interim stay on a show cause notice issued to Surya Business Private Limited under the Assam GST Act, 2017. The notice sought the reversal of Input Tax Credit (ITC) amounting to Rs. 27,25,503/- for the financial year 2018-2019, along with interest and penalty.
Detailed Analysis: The show cause notice, dated 11.01.2024, was issued under Section 73 r/w Section 50 of the Assam GST Act, 2017. It demanded an explanation from Surya Business Private Limited within 30 days regarding the claimed excess Input Tax Credit (ITC) amount. The petitioner contested the notice, arguing that they had availed ITC based on valid tax invoices from the supplier and had duly paid taxes to the supplier.
Citing precedents, including a decision by the Hon’ble Supreme Court of India in Union of India vs. Bharti Airtel Limited and others, the petitioner sought relief from the Gauhati High Court. Additionally, reference was made to a decision of the Hon’ble Calcutta High Court in the case of Suncraft Energy Private Limited vs. The Assistant Commissioner, State Tax, highlighting similar circumstances.
On the other hand, the learned Standing Counsel, Finance and Taxation Department, defended the issuance of the show cause notice, stating that it was in accordance with Circular no. 183/15/2022, particularly Clause 4.1.1.
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