Ford India Private Limited Vs Deputy Commissioner (ST-III) (Madras High Court)
In the case of Ford India Private Limited vs. Deputy Commissioner (ST-III) (Madras High Court), the Madras High Court addressed issues related to an assessment order dated 18.03.2024 that was challenged primarily on the grounds of being unreasoned. Here’s a detailed summary of the judgment delivered by the Madras High Court:
Background:
Proceedings were initiated against Ford India Private Limited for the assessment period 2018-19 under two separate show cause notices, both dated 27.12.2023. Following the petitioner’s reply dated 25.01.2024, one set of proceedings was dropped, while the other proceeded to culminate in the assessment order that was contested.
Petitioner’s Arguments: 2. The petitioner contended that in their reply to the show cause notice, they had explained discrepancies related to input tax credit, particularly highlighting that the credit availed was lower than what was available in the auto-populated GSTR-2A. They argued that GSTR-2A data is dynamic and may not always reflect accurate figures due to delays in supplier filings, which was acknowledged by the CBIC (Central Board of Indirect Taxes and Customs) in a press release dated 03.07.2019.
Government Advocate’s Response: 3. Mr. V. Prashanth Kiran, appearing for the respondent, suggested that the matter be remanded for reconsideration, allowing the assessing officer to reevaluate the issue concerning the mismatch in tax credits.
