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.
