Case Law Details
Brakes India Private Limited Vs Assistant Commissioner (ST) (Madras High Court)
Introduction: In a significant legal development, the Madras High Court addressed an issue in the case of Brakes India Private Limited vs. Assistant Commissioner. The court scrutinized the validity of an order dated 30.10.2023, pertaining to the assessment year 2018-2019. The central concern was the adequacy of notice provided to the petitioner regarding the reversal of Input Tax Credit (ITC).
Detailed Analysis: The petitioner, a registered entity under the current GST regime, contested the order proposing to block their ITC under Rule 86-A of the TNGST/CGST Rules, 2017. The notice, issued by the respondent on 14.02.2023, targeted purchases from M/s. Quality Traders, alleging their non-existence or status as bill traders. The petitioner promptly responded to this notice.
Subsequently, a show cause notice dated 09.10.2023 was issued, with the petitioner claiming to have received it on the same day as the scheduled hearing. The show cause notice set the personal hearing at 02.00 pm on the day of receipt, leaving the petitioner with insufficient time to present relevant documents and explain their position.
The court, without delving into the merits of the case, identified the lack of a reasonable opportunity for the petitioner as a crucial flaw in the proceedings. Consequently, the impugned order directing the reversal of ITC was quashed. The court directed a re-consideration of the matter, emphasizing the need for a reasonable opportunity, including a personal hearing, and ordered the petitioner to submit relevant documents by 24.01.2024.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
