Case Law Details
Sri Shanmuga Hardwares Electricals Vs STO (Madras high court)
In a recent judgment, the Madras High Court addressed the issue of Input Tax Credit (ITC) claims in the case of Sri Shanmuga Hardwares Electricals versus the State Tax Officer. The petitioner, engaged in the trade of electrical products and hardware, contested separate assessment orders for the years 2017-2018, 2018-2019, and 2019-2020.
The petitioner argued that despite filing nil returns in GSTR-3B inadvertently, they were eligible for ITC as reflected in their GSTR-2A and annual GSTR-9 returns. However, the assessment orders rejected their ITC claims solely on the basis of non-declaration in the GSTR-3B returns.
The Court emphasized that when a taxpayer asserts ITC eligibility with reference to GSTR-2A and GSTR-9 returns, the assessing officer must thoroughly examine the validity of the claim based on all relevant documents. In this case, the rejection solely due to non-declaration in GSTR-3B was deemed unjustified.
Consequently, the Court quashed the assessment orders and remanded the matters for reconsideration. The petitioner was granted two weeks to submit all relevant documents supporting their ITC claims. The assessing officer was instructed to provide a reasonable opportunity, including a personal hearing, and issue fresh assessment orders within two months.
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