Case Law Details
Anaz Abdul Rahiman Kutty Vs State Tax Officer (Kerala High Court)
Kerala High Court held that since the period involved is 2017-2018 when the GST regime was rolled out, there was difficulty in understanding GST. Further, tax is paid to the Government for which input tax credit is claimed. Hence, disallowance set aside.
Facts- The petitioner is a registered dealer under the provisions of the CGST/SGST Act. The petitioner had filed monthly returns GSTR 3B for the Assessment Year 2017-18. On scrutiny of the monthly return filed by the petitioner, certain discrepancies were noticed, which were communicated to the petitioner through notice in Form GST ASMT 10 as per Rule 99(1) of the GST Rules.
The petitioner was directed to furnish a reply along with proof of payment of tax and interest within a period of thirty days from the receipt of the notice. Petitioner neither filed any reply nor remitted the tax and interest on or after the due date. An intimation as per Rule 142(1A) of the SGST/CGST Rules in Form GST DRC-01A determining the tax ascertained, payable u/s. 73(5) of the Act, along with the defects found in the return of the scrutiny was communicated to the petitioner. The petitioner was directed to pay the said amount of tax as ascertained, along with the applicable interest in full by 27.01.2021, failing which show cause notice will be issued u/s. 73(1). However, the petitioner neither remitted the tax and interest demanded in DRC 01A nor filed any objections to the tax ascertained.
In the circumstances, notice u/s. 73(1) of the SGST/CGST Act along with DRC 01 was issued to the petitioner. However, the petitioner did not produce any documentary proof to support his claim. In view thereof, considering the difference between GSTR 2A and 3B, the input tax credit claim of the petitioner to the extent of Rs.1,26,281/- under the SGST and the same amount under the CGST were disallowed. The Assessing Authority has levied interest of Rs.1,03,315/- under the CGST and the same amount under the SGST, and Rs.12,628/- each penalty has been imposed under the CGST and SGST. The total tax, interest and penalty has been assessed at Rs.4,84,448/-.
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