2023 (8) TMI 578 - HC - GST

Excess availment of ITC in GSTR-3B than available in their GSTR-2A - petitioner had failed to file a reply in time - HELD THAT - The petitioner ought to have appeared for a personal hearing and made a detail submission instead of requesting the respondent to pass orders based on the documents that were furnished along with the reply dated 28.06.2023. The officers would have required proper assistance or otherwise the officers would be left with no other option but to confirm the demand proposed in the Show Cause Notice, if the document filed themselves do explain the defence of the petitioner. Prima facie it appears that the credit was availed by the petitioner on the supplies which were taxed, although, the returns were filed belatedly by the petitioner's supplier. The case is remitted back to the respondent to pass appropriate orders on merits and in accordance with law after duly considering the petitioner's reply dated 28.06.2023 - the impugned order is set aside - Petition allowed by way of remand.

Summary

Issues involved:
The challenge to the Assessment Order in GSTN/33ABACS2519L1ZE for the Assessment Year 2020-2021 based on excess availment of ITC, failure to file a reply to Show Cause Notice, and demand confirmation due to alleged irregularities in other assessment years.

Challenge to Assessment Order:
The petitioner challenged the Assessment Order for the Assessment Year 2020-2021, citing excess availment of Input Tax Credit (ITC) in GSTR-3B compared to GSTR-2A for the years 2019-20 and 2021-22. The respondent rejected the petitioner's replies as incorrect, leading to the confirmation of the demand based on alleged irregularities in other assessment years.

Failure to File Reply to Show Cause Notice:
The petitioner failed to file a reply within the stipulated time after receiving a Show Cause Notice dated 26.05.2023. A reminder was sent by the respondent, prompting the petitioner to reply on 28.06.2023, which was acknowledged. The petitioner's officer also appeared on 30.06.2023 and submitted a physical copy of the reply.

Demand Confirmation Due to Alleged Irregularities:
The demand for the Assessment Year 2020-2021 was confirmed based on irregularities in the Assessment Years 2019-2020 and 2021-2022. The Assessment Order for 2019-2020 was set aside in a separate order. For 2020-2021, the petitioner explained a mismatch as arising from supplier delays in filing returns, with the availed credit reflected in GSTR-2A for three financial years.

Judgment and Remittance Back to Respondent:
The High Court set aside the impugned order and remitted the case back to the respondent for appropriate orders on merits within 45 days of the order. The petitioner is to be heard before the new orders are passed, and they are required to report before the respondent on a specified date. The petitioner can submit additional replies or representations before the specified date. The Writ Petition was allowed with no costs, and connected Writ Miscellaneous Petitions were closed.