Case Law Details
Tikona Infinet Private Limited Vs State of Andhra Pradesh (Andhra Pradesh High Court)
Andra Pradesh High Court dismissed the writ petition preferred against show cause notice in Form GST DRC-01 as the petitioner is required to approach the authority which has issued the notice and file the necessary objections with evidence.
Facts- The petitioner/TIPL entered into a Business Transfer Agreement (BTA), dated 17.08.2017 with Tikona Digital Networks (TDN), vide which the business of TDN was transferred to the petitioner, as a going concern. It is submitted that the TDN filed letter dated 13.09.2017 to the Commercial Tax Officer intimating that as per Rule 41 (1) of CGST Rules, a registered person intending to transfer the input tax credit is required to file GST-ITC 02 on the common portal to the transferee and TDN intended to transfer unutilized credit in the electronic credit ledger of TDN on the date of slump sale to TIPL, but Form ITC-02 was not available on GSTN portal, and consequently, TDN was not able to transfer on GSTN portal and TIPL was unable to utilize the credit balance appearing in the electronic credit ledger of TDN. Consequently, it was requested to let TDN know the procedure to be followed for transfer of credit from TDN to TIPL under the circumstances. It is further submitted that the petitioner/TIPL also submitted letter dated 12.02.2018 to the jurisdictional authority duly intimating about the transfer of ITC to TDN manually.
The Assistant Commissioner issued notice GST ASMT-10 intimating the discrepancy in the return after scrutiny (scrutiny notice) and calling for the explanation for such discrepancy. On consideration of the petitioner’s reply, the impugned show cause notice dated 29.09.2023 has been issued.
Writ petition for a writ of Mandamus under article 226 of the Constitution of India was filed by the petitioner against the said show cause notice.
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