N. R. Builders Vs Commissioner of commercial taxes (GSTAT Bengaluru)
Summary: The Goods and Services Tax Appellate Tribunal, Bengaluru Bench, allowed the appeal of M/s. N. R. Builders by way of remand in a dispute concerning alleged excess Input Tax Credit (ITC) of ₹2,33,502/- for Financial Year 2018–19. The disputed amount comprised CGST of ₹1,16,751/- and SGST of ₹1,16,751/-. Interest of ₹2,03,730/- and penalty of ₹23,350/- had also been imposed, resulting in a total demand of ₹4,60,582/-.
The Appellant, a proprietary concern engaged in quarrying and sale of crushed stones, contended that the apparent mismatch between FORM GSTR-3B and FORM GSTR-2A did not represent excess ITC. According to the Appellant, the disputed credit related to Financial Year 2017–18 invoices but was availed in Financial Year 2018–19 within the permissible period under Section 16(4). The Appellant also challenged the proceedings on the ground that no personal hearing was granted and that no notice in FORM GST ASMT-10 had preceded the proceedings.
A pre-intimation in FORM GST DRC-01A was issued on 22.01.2024, followed by a Show Cause Notice in FORM GST DRC-01 dated 30.01.2024 under Section 73. The Show Cause Notice itself recorded the date, time and venue of personal hearing as “NA”. The Proper Officer subsequently confirmed the entire demand ex parte. The First Appellate Authority dismissed the appeal and upheld the demand.
