New Fathima Medicals Vs Deputy Commissioner (ST) (Madras High Court)
Madras High Court set aside order passed in respect of excess claim of input tax credit, due to non-appearance on the part of petitioner, with the condition to deposit 25% of the disputed tax amount. Directed to grant opportunity of being heard on payment of required amount.
Facts- The petitioner is running a medical shop, a proprietorship business and is registered under Goods and Services Act, 2017. While scrutinizing the petitioner’s return, it was found that on comparison of the Input Tax Credit availed in Table 4.A.(2) + 4.A.(3) of GSTR-3B against reverse charge and liability declared against inward supply on reverse charge in Table 3.1d of GSTR-3B, it was noticed that the petitioner had claimed excess input tax credit.
Subsequently, notices in Form DRC-01A and DRC-01 were issued to the petitioner on 30.08.2023 and 12.12.2023 respectively through GST Portal, followed by three reminder notices dated 19.01.2024, 15.02.2024 & 05.03.2024 respectively and personal hearing opportunity was also afforded to the petitioner. However, the petitioner had neither filed its reply nor appeared for personal hearing. Hence, the impugned order came to be passed.
Conclusion- Held that the impugned order dated 16.03.2024 is set aside and the petitioner shall deposit 25% of the disputed tax within a period of two (2) weeks from the date of receipt of a copy of this order. On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four (4) weeks from the date of receipt of a copy of this order along with supporting documents/material. If any such objections are filed, the same shall be considered by the second respondent and orders shall be passed in accordance with law after affording a reasonable opportunity of hearing to the petitioner.
