Case Law Details
CBC Fashions (Asia) Private Limited Vs The Assistant Commissioner (Madras High Court)
Madras High Court directed to deal with the matter of disallowance of ITC on account of mismatch between returns filed by the petitioners and returns filed by purchasing/ selling third party dealers as per Circular No. 5 of 2021 dated 24.02.2021
Facts- the issue arising in these matters relates to (i) the disallowance of Input Tax Credit (ITC) arising out of the alleged mismatch between the returns filed by the petitioners when compared with the returns and annexures filed by the purchasing / selling third party dealers and (ii) reversal of ITC on the allegations that there has been no actual movement of goods qua the transactions in question.
Conclusion- In regard to the first issue a Bench of this Court in the case of M/s.JKM Graphics Solutions Private Limited v Commercial Tax Officer (99 VST 343) had issued certain directions for conduct of verification and assessment in such matters. While some of these directions have been complied with in the present cases, learned counsel concur on the position that there are other conditions that have been set out under Circular No.5 of 2021 dated 24.02.2021 that yet remain to be complied.
For the second issue relating to movement of goods it is directed to the assessing authority to await decision in W.A.No.2607 of 2021 and complete the assessments thereafter in light of the judgment of the Hon’ble Supreme Court in Ecom Gill Coffee Trading Private Limited and the decision of the Division Bench within a period of 12 weeks from date of pronouncement of the decision in W.A.No.2607 of 2021.
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