Case Law Details
Oasys Cybernetics Private Limited Vs State Tax Officer (Madras High Court)
In a recent judgment, the Madras High Court intervened in a case where Oasys Cybernetics Private Limited contested an assessment order dated 29.12.2023. The dispute arose from the company’s activities involving the supply and installation of point-of-sale machines in ration shops operated by the Tamil Nadu Civil Supplies Corporation, integrating them with a central server.
The petitioner received a show cause notice dated 14.09.2023 highlighting discrepancies between their GSTR 3B returns and the auto-populated GSTR 2A. In response, the petitioner submitted explanations on 10.10.2023 and 17.10.2023, accompanied by annexures. Despite this, the assessment order was issued on 29.12.2023, prompting the legal challenge.
The petitioner’s counsel argued that the discrepancies primarily stemmed from the issuance of credit notes to service recipients. Due to the first-year implementation of GST statutes, these credit notes were mistakenly reported under the B2C (others) transactions instead of the appropriate heading in the GSTR 1 statements. The petitioner clarified that these credit notes were incorrectly labeled as Input Tax Credit (ITC) without any actual revenue impact. Furthermore, they provided a certificate from a Chartered Accountant as per Circular No.183 to support their claims.
However, the assessing officer disregarded these explanations. The officer reversed ITC amounting to Rs.4,08,39,428/-, citing the petitioner’s error in reporting in the GSTR 1 statement. Additionally, the certificate from the Chartered Accountant was rejected without clear reasons.
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