Case Law Details
Carefil Technology Vs Superintendent of GST And Central Excise (Madras High Court)
The petitioner challenged an order dated 26.04.2024 relating to the tax period 2018–2019. The impugned order was passed pursuant to a Show Cause Notice in GST DRC-01 dated 30.11.2023. Although several reminders had been issued, the petitioner had not filed any reply to the show cause notice, resulting in the passing of the impugned order.
By the impugned order, the respondent confirmed the proposal contained in the show cause notice. The defect identified in the notice related to the belated availment of Input Tax Credit (ITC) under Section 16(4) of the relevant GST enactments.
The Madras High Court noted that, through the insertion of Sections 16(5) and 16(6) into the GST enactments by the Finance (No. 2) Act, 2024, with retrospective effect from 01.07.2017, the defect that formed the basis of the show cause notice and the impugned order had been cured.
In view of this statutory intervention, the Court quashed the impugned order and remitted the matter back to the respondent for fresh consideration on merits and in accordance with law.
The Court directed the petitioner to file a proper reply to the GST DRC-01 show cause notice, along with all necessary supporting documents, within thirty days from the date of receipt of the Court’s order.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Mr. G.Meganathan, learned Junior Panel Counsel and Mr.S.Gurumoorthy, learned Senior Standing Counsel takes notice for the Respondent.
2. This Writ Petition is being disposed of at the time of admission with the consent of the learned counsel for the Petitioner and learned Junior Panel Counsel and Senior Standing Counsel for the Respondent.
3. In this Writ Petition, the Petitioner has challenged the impugned Order dated 26.04.2024 passed for the tax period 2018 – 2019, which preceded a Show Cause Notice in GST DRC-01 dated 30.11.2023, to which the Petitioner had not filed a reply, despite several reminders and thus suffered the impugned order.
4. By the impugned order, the proposal in the Show Cause Notice in GST DRC – 01 dated 30.11.2023 has been confirmed. The defect that was pointed out in the aforesaid Show Cause Notice is due to belated filing of Input Tax Credit in accordance with Section 16(4) of the respective GST enactments.
5. However, it is noticed that by way of statutory intervention in view of the insertion of Section 16(5) and 16(6) to the respective GST enactments inserted by Finance (No.2) Act, 2024 (15 of 2024) dated 16.08.2024, vide SO 4253(E) with retrospective effect from 01.07.2017, the aforesaid defect raised in the Show Cause Notice which was confirmed vide impugned order, has been cured.
6. In view of the above, the impugned order is quashed and the case is remitted back to the Respondent to pass a fresh order on merits and in accordance with law.
7. Needless to state, the Petitioner shall file a proper reply to the Show Cause Notice in GST DRC – 01 together with requisite documents to substantiate the case, within a period of thirty days from the date of receipt of a copy of this order.
8. This Writ Petition stands disposed of with the above observations. No costs. Connected Writ Miscellaneous Petitions are closed.
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