Sait Nagjee Purushotham And Company Private Ltd Vs Commercial Tax Officer (Karnataka High Court)
Karnataka High Court has set aside an order issued by the Commercial Tax Officer against Sait Nagjee Purushotham And Company Private Ltd., and has remitted the matter back to the tax authority for fresh reconsideration. The High Court found that the tax officer had failed to adequately consider the petitioner’s detailed reply and supporting documents, including credit notes, submitted in response to a show cause notice.
Sait Nagjee Purushotham And Company Private Ltd. had challenged an order dated December 26, 2024, issued by Respondent No. 1, arguing that it was passed without proper consideration of their response to the show cause notice dated November 26, 2024. The petitioner’s counsel highlighted that their reply, submitted on December 24, 2024, specifically addressed various observations in the show cause notice, including those related to inward supply as per GSTR 2A, and had included relevant credit notes and other documents.
The petitioner relied on a judgment by the Madras High Court in M/S. OASYS CYBERNETICS PRIVATE LIMITED VS. STATE TAX OFFICER (W.P.NO.9624/2024, decided on April 12, 2024). In that case, the Madras High Court had set aside an assessment order where the assessing officer failed to duly examine the taxpayer’s explanation regarding discrepancies between GSTR 3B and GSTR 2A, particularly concerning credit notes and the rejection of a Chartered Accountant’s certificate without assigning reasons. The Madras High Court had emphasized the need for a thorough examination of the explanation to ascertain whether there was revenue loss due to excess Input Tax Credit (ITC) availment.
