P Murugan Vs Commercial Tax Officer (Madras High Court)
Madras High Court held that challenge to the show cause notices in Form DRC-01 dated 18.12.2024 is premature. However, court directed respondent to complete proceedings within 5 weeks period since respondent has blocked Input Tax Credit on allegation that credit is availed on the basis of fake invoices issued by non-existent taxpayer.
Facts- The petitioner is registered taxpayer under the Goods and Services Tax Act, 2017. During the relevant period, the petitioner had filed its return and paid the appropriate taxes. While so, show cause notices in Form GST DRC-01 dated 18.02.2025 were issued to the petitioner through GST portal, alleging that the petitioner was in receipt of the Inward supplies of goods and services from the non-existent taxpayer were in issuance of fake invoices/without actual supply of goods and services for the year 2023-24. Therefore, the Input Tax Credit was blocked by the respondents. According to the petitioner, that the transactions of inward supplies from the suppliers are bonafide, as such the issue of fake invoices, does not arise.
It is also submitted that pursuant to the issuance of show cause notices dated 18.02.2025, the petitioner had submitted his reply along with documentary evidence. Since the Input Tax Credit was blocked by the respondents, the petitioner was unable to operate his business transactions. Hence, the petitioner has filed the present Writ Petitions.
