Amit Metalics Company Vs Joint Commissioner of State Tax (Orissa High Court)
The Orissa High Court dismissed a writ petition filed by Amit Metalics Company, which challenged an assessment order that rejected its claim for Input Tax Credit (ITC) and imposed a total liability of Rs.72,63,912/− (including tax, interest, and penalty) under Section 74 of the GST Act. The Court declined to exercise its extraordinary jurisdiction, stating that the dispute involved controversial questions of fact that the petitioner must resolve through the alternative statutory remedies available under the Goods and Services Tax (GST) Act.
The Allegations and Assessment Order
The petitioner was assessed for the tax periods from December 2023 to March 2024. The core allegation by the Revenue Department was the wrongful availment and utilization of ITC against transactions claimed to have been effected with two suppliers, M/s. Swastik Trade Ventures and M/s. MG Trade and Services. The department contended that the petitioner used fake invoices for these transactions, as the suppliers were found to be non-existent entities.
The assessment order passed by the Joint Commissioner of State Tax concluded that the petitioner was ineligible for the ITC benefit, finding the transactions to be fraudulent and based on fake invoices. The penalty imposed was equivalent to the amount of tax sought to be evaded.
