Case Law Details
Tvl. Renault Nissan Automotive India Pvt. Ltd. Vs Joint Commissioner (ST) (FAC) (Madras High Court)
In a significant legal development, the Madras High Court has addressed a contentious issue involving Renault Nissan Automotive India Pvt. Ltd. and the Joint Commissioner (ST) (FAC) regarding Goods and Services Tax (GST) revision proceedings under the Tamil Nadu Goods and Services Tax Act, 2017 (the TNGST Act). The dispute centers around an order dated 08.12.2021, which the petitioner, Renault Nissan, challenged on various grounds related to the refund of Input Tax Credit (ITC).
Detailed Analysis: Renault Nissan Automotive India Pvt. Ltd. is engaged in the manufacture and supply of passenger cars, benefiting from concessional GST rates. This situation led to an accumulation of ITC, prompting the company to seek a refund. Initially, a substantial portion of the requested refund was sanctioned. However, following an amendment to the GST rules, revision proceedings were initiated, culminating in the contested order.
The petitioner raised multiple objections against the revision order, primarily arguing that the order exceeded the scope of Section 108 of the TNGST Act. Furthermore, they contested the imposition of interest and penalties, asserting that their refund claim was made in good faith and in accordance with the law as it stood at the time.
On the other hand, the government’s representation emphasized the broad scope of Section 108, justifying the revision proceedings based on the amended Rule 89(5), which had been upheld by higher courts, including the Supreme Court.
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