Case Law Details
Ansil Ibrahim Vs Assistant Commissioner second Circle (Kerala High Court)
In a recent judgment, the Kerala High Court dismissed a writ petition filed by Ansil Ibrahim, the proprietor of ‘M/s Light House,’ against the Assistant Commissioner Second Circle. The case revolved around the denial of input tax credit (ITC) under the CGST and SGST Acts. We will delve into the details of the case and the court’s rationale in this article.
1. Background of the Case: Ansil Ibrahim, operating under the business name ‘M/s Light House,’ had his claim for an ITC of Rs. 98,479 under both CGST and SGST denied by the Assessing Authority. Additionally, interest charges of Rs. 92,031 under CGST and SGST, as well as penalties of Rs. 10,000 each, were imposed. This resulted in a total tax, interest, and penalty assessment of Rs. 4,01,020.
2. Show Cause Notice and Lack of Response: The petitioner received a show cause notice under Section 73(1) of the CGST/SGST Act in September 2021. However, Ansil Ibrahim did not respond to the notice, nor did he appear for the personal hearing scheduled for February 16, 2022.
3. Basis of Denial of ITC: The Assessing Authority based its denial of ITC on the absence of any material provided by the petitioner to substantiate his claim, except for Form GSTR 2A and GSTR 3B. Section 16 of the CGST/SGST Act 2017 prescribes the conditions for claiming ITC, and the burden of proof rests with the registered person (Section 155).
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