Case Law Details
M. R. V. Traders Vs Assistant Commissioner (ST)(FAC) (Madras High Court)
The Madras High Court recently delivered a significant judgment in the case of M. R. V. Traders Vs Assistant Commissioner (ST)(FAC), highlighting issues with the GST Department’s handling of e-invoice and e-way bills. The case revolves around an original order dated August 17, 2023, which was challenged by M. R. V. Traders. The petitioner contested the order, citing non-consideration of crucial documents, including purchase invoices, e-way bills, and bank statements. They argued that these documents sufficiently proved the legitimacy of their Input Tax Credit claims.
The court noted that despite the petitioner submitting extensive documentation, the GST Department failed to adequately verify the movement of goods. The respondent’s conclusion that the petitioner did not establish goods movement was based on insufficient scrutiny of submitted records.
In response, the court critiqued the department’s approach, emphasizing the importance of due diligence in assessing such claims. The judgment underscored the principles of natural justice and criticized the department for not thoroughly examining the evidence provided by the petitioner.
The court’s decision set aside the impugned order on the condition that M. R. V. Traders remit 10% of the disputed tax demand within fifteen days. It allowed the petitioner to submit additional documents and mandated the GST Department to provide a reasonable opportunity for a fresh assessment within three months.
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