Case Law Details
Monika Alloys India Private Limited Vs State Tax Officer (Madras High Court)
The Madras High Court recently addressed a dispute involving Monika Alloys India Private Limited concerning the wrongful availment of Input Tax Credit (ITC). The petitioner contested an order dated December 26, 2023, claiming that their reply to a show cause notice dated September 19, 2023, was ignored. The petitioner had responded to the notice on October 10, 2023, indicating that transitional VAT credit was claimed via Form TRAN-1. Despite this, the impugned order inaccurately stated that no objections or evidence had been filed. The Court found this error significant and thus set aside the order, remanding the matter for reconsideration. The respondent was directed to review the case afresh, considering the petitioner’s submitted documents and providing a personal hearing, with a new decision required within three months. The writ petition was disposed of on these terms, with no costs awarded.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
An order dated 26.12.2023 is assailed on the ground that the petitioner’s reply was not taken into consideration. The petitioner received a show cause notice dated 19.09.2023 alleging wrongful availment of Input Tax Credit (ITC). Such show cause notice was replied to on 10.10.2023 by stating that transitional VAT credit was claimed by filing Form TRAN-1. The impugned order was issued thereafter on 26.12.2023.
2. Learned counsel for the petitioner referred to the reply and contended that the reply and the documents annexed thereto were not taken into consideration while issuing the impugned order.
3. Mr. C. Harsha Raj, learned Additional Government Pleader, accepts notice for the respondent. He submits that the matter may be remanded for reconsideration.
4. The petitioner has placed on record the reply dated 10.10.2023. Such reply appears to have been uploaded on the portal along with attachments thereto. In the impugned order, it is recorded that the petitioner did not file any objections to the DRC-01 notice or any documentary evidence. Such finding is contrary to the documents on record.
5. Therefore, the impugned order dated 26.12.2023 is set aside and the matter is remanded for reconsideration. After providing a reasonable opportunity to the petitioner, including a personal hearing, the respondent is directed to issue a fresh order within a period of three months from the date of receipt of a copy of this order.
6. The Writ Petition is disposed of on the above terms. There shall be no order as to costs. Consequently, the connected miscellaneous petitions are also closed.
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