Case Law Details
Sri Lakshmi Silvers Vs State Tax Officer (Madras High Court)
In a recent ruling, the Madras High Court has set aside an assessment order dated 11.07.2023, citing breaches of natural justice principles and non-adherence to prescribed procedures regarding GST returns.
The case involves Sri Lakshmi Silvers, a registered entity engaged in the supply of base metals, contesting an assessment for the financial year 2019-20. The petitioner claimed Input Tax Credit (ITC) for received supplies but faced challenges in responding to a notice (Form GST ASMT-10) due to lack of awareness, relying solely on their accountant.
Central to the challenge was the absence of an opportunity for the petitioner to contest the tax demand and the failure to adhere to circulars issued by the Central Board of Indirect Taxes and Customs regarding procedures for resolving disparities between GSTR-3B and GSTR-2A returns.
Acknowledging the petitioner’s plea, the Court ruled that the assessment order primarily focused on the disparity in ITC without questioning the genuineness of transactions. Moreover, it noted the non-compliance with prescribed circulars.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
