Case Law Details
Unity Ooh Media Solutions Pvt. Ltd. Vs Deputy State Tax Officer (Kerala High Court)
Introduction: The Kerala High Court recently addressed a crucial case involving the rejection of Input Tax Credit (ITC) due to a supplier’s failure to file GSTR-1 on time. In the matter of Unity Ooh Media Solutions Pvt. Ltd. vs. Deputy State Tax Officer, the court remanded the case to the assessing authority, challenging the assessment order (Ext.P2).
Background: Unity Ooh Media Solutions Pvt. Ltd., an assessee under the GST/CGST Act, filed GSTR-1 and GSTR-3B returns for the period July 2017 to March 2018. The company claimed input tax credit for the tax period on goods purchased from registered dealers. However, the 1st respondent issued notices due to the petitioner’s failure to respond to show cause notices. The assessment order (Ext.P2) denied a portion of the claimed input tax credit, citing the non-filing of GSTR-1 by certain suppliers before the due date.
Detailed Analysis: The primary contention of the petitioner, as argued by their counsel, is that they were denied the opportunity to represent their case before the 1st respondent. The petitioner faced initial difficulties in navigating the GST portal, preventing them from filing replies and participating in the assessment process. The denial of input tax credit in Ext.P2 was solely based on the suppliers’ non-compliance with GSTR-1 filing deadlines.
The learned counsel for the petitioner referred to a relevant judgment (WP(C) No. 30660 of 2023) and emphasized the petitioner’s right to a fair hearing. The judgment in Diya Agencies v. The State Tax Officer highlighted that denial of input tax credit merely on the grounds of GSTR-2A non-reflection is unsustainable. The court, in that case, directed the assessing officer to provide an opportunity for the assessee to substantiate their claim with evidence.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
