JIT Auto Comp Vs Assistant Commissioner (Madras High Court)
CHENNAI, INDIA – In a significant ruling dated July 8, 2025, the Madras High Court, in the case of M/S. JIT AUTO COMP, REP. BY ITS MANAGING PARTNER K. VELMURUGAN VERSUS ASSISTANT COMMISSIONER, HOSUR (W.P. No. 16474 of 2024 & W.M.P. Nos. 18033 & 18034 of 2024), has held that initiating proceedings under Section 74 of the CGST Act, 2017, solely on the grounds of a supplier’s non-submission of a Chartered Accountant (CA) certificate, is unjustified. This is especially true when there’s no evidence of fraud or misrepresentation by the petitioner. The court emphasized that authorities have the power to conduct independent verification of Input Tax Credit (ITC) claims, even without a CA certificate from the supplier, as per Circular No. 183/15/2022-GST dated December 27, 2022.
Case Background:
The petitioner, M/S. JIT AUTO COMP, received a show cause notice under Section 74 of the CGST Act, 2017. The notice alleged an excess availment of ITC between July 2017 and March 2020, citing discrepancies between GSTR-2A (auto-populated inward supplies) and GSTR-3B (ITC claimed). The department accused the petitioner of fraudulently availing ITC without actual receipt of goods or services and lacking supporting documents, thereby invoking fraudulent intent under Section 74.
