Case Law Details
Sincon Infrastructure Pvt. Ltd. Vs Union of India (Patna High Court)
In case of Sincon Infrastructure Private Limited Versus Union of India (Civil Writ Jurisdiction Case No. 11621 of 2023) Patna High court observed that, Benefit of ITC, will accrue to the tax payer, when he files the return and claim the ITC on self-assessment basis and not at the time, he makes payment to supplier.
If there is a delay in furnishing of returns, then obviously there is a delay in the input tax credit coming into the Electronic Credit Ledger. So on delay occasions the taxpayer has to pay the interest, by himself; which is a statutory compulsion independent of any order or demand made under the Act.
Department Audit was conducted and on the basis of finding and reply submitted by the taxpayer, The Proper Officer after considering the reply invoked Section 74 read with Section 65 (7) of the Act and issued a notice with respect to the seven of the nine objections raised on audit. Show cause notice was issued for the Interest on late payment of Tax.
The petitioner is aggrieved with the peremptory demand made and the recovery proceeded with, when the objections against the said demand on interest also ought to have been considered by the Proper Officer.
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