Case Law Details
Goodyear India Limited Vs State Tax Officer (Kerala High Court)
Introduction: Goodyear India Limited recently contested a GST notice in the Kerala High Court, challenging allegations of wrongful input tax credit. The court, in its order, disposes of the petition, urging the petitioner to explore the statutory appeal process under the CGST/SGST Act.
Detailed Analysis: The petitioner, a dealer under the CGST/SGST Act, engaged in trading of tyres and tubes, received a show cause notice under Section 73(1) of the CGST/SGST Act. The notice claimed that the petitioner wrongly availed input tax credit, leading to a demand of Rs. 5,18,317, including tax and interest. The petitioner, in response, submitted a detailed reply, emphasizing correct credit availing under Section 140(3) of the CGST Act.
Despite the petitioner’s contentions, the assessing authority, through an order dated 20.10.2023, upheld the demand in the show cause notice, declaring the availing of TRAN-II credit as irregular. The authority recommended remitting the matter back to the Government.
The petitioner, represented by learned counsel, argued the correctness of the credit availed, highlighting subsequent returns where TRAN-II credit was allowed. However, the court, noting the availability of the statutory appeal process under the CGST/SGST Act, declined to examine the assessment order.
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