Case Law Details
Tvl. Devi Vs Deputy State Tax Officer (Madras High Court)
The case of Tvl. Devi versus Deputy State Tax Officer-1 before the Madras High Court revolves around an order dated 04.08.2023, which is contested by the petitioner on the grounds of denial of a reasonable opportunity. The petitioner, engaged in the business of dealing in construction material, received a show cause notice dated 06.2023, to which they replied on 25.07.2023, stating that a commercial vehicle was purchased.
The petitioner’s argument hinges on the assertion that the commercial vehicle, a tipper lorry, was acquired in the course of business and thus qualifies for Input Tax Credit (ITC) under applicable GST laws. However, they claim that their response was disregarded in the impugned order, which failed to consider the evidence presented in the form of an invoice. The petitioner seeks an opportunity to demonstrate to the respondent that they were indeed entitled to ITC for the purchase.
In response, Mr. V. Prashanth Kiran, learned Government Advocate, representing the respondent, contends that since the petitioner replied to the show cause notice without providing supporting documents, they are not entitled to further consideration. He argues that the petitioner cannot claim ignorance of the proceedings and therefore does not merit another opportunity.
The petitioner’s initial reply to the show cause notice simply stated, “Commercial vehicle lorry purchased furtherance of business,” without uploading any supporting documents. Consequently, they failed to substantiate their claim that the purchase was made in furtherance of business and fell outside the scope of relevant GST laws. However, the petitioner has since provided the relevant invoice and reiterated that the purchase was indeed for business purposes as they are dealers in construction material.
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