Ravi Chitra Vs Assistant Commissioner (ST) (Madras High Court)
The Madras High Court recently delivered a significant ruling in the case of Ravi Chitra Vs Assistant Commissioner (ST) concerning GST liability. The case revolves around allegations of improper Input Tax Credit (ITC) claim and the subsequent demand raised by the tax authorities. The petitioner, Ravi Chitra, received a show cause notice alleging wrongful ITC availing for the tax period 2019-20. Despite submitting original tax invoices, bank statements, ledger accounts, and relevant returns, the impugned order confirming the tax proposal was issued citing absence of proof of goods movement.
The petitioner contended that they were unaware of the order due to reliance on a tax consultant for GST compliance. The court noted multiple reminders for personal hearings were issued post the petitioner’s reply, none of which led to submission of goods movement proofs like e-way bills or weighment slips.
The High Court, after detailed consideration, set aside the order dated 30.08.2023, granting the petitioner a second chance to contest the tax claim. A condition of remitting 20% of the disputed tax demand within two weeks was imposed, along with permission to submit additional documents proving goods movement.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
