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2024 (3) TMI 547 - HC - GSTLiability on the head of IGST and interest with a penalty - issued show cause notice pointing out defects - Sundry Credit - Dealer of plywood registered under the GST Act - application u/s 161 of GST Act - HELD THAT - Petitioner claims that he has paid the tax amount and he has also enclosed the Bank Statement. However, the respondent has passed an order treating the entire purchase value of sundry credit as tax liability, instead of deducting the ITC Tax element involved on the sundry creditors. According to him, the total sundry credit as per the IT returns is Rs.3,14,65,707/- and the tax component for this purchase value is 18%. However, the assessing authority, without considering the same, has considered the entire value of purchase as a tax amount as ITC and wrongly reversed the entire purchase credit value to the tune of Rs.3,14,65,707/-. Additional Government Pleader, who takes notice for the respondent, submits that the petitioner is having a right of filing an application u/s 161 of GST Act to correct the error before the concerned authority within a period of 90 days. If the petitioner is having any grievance as against the amount arrived in the assessment order, he can very well file an application u/s 161 of GST Act, within a period of 90 days. Thus, this writ petition is disposed of with a liberty to the petitioner to file an application u/s 161 of GST Act along with the required documents.
Issues involved:
The issues involved in the judgment are related to GST assessment, incorrect tax liability determination, and the right of the petitioner to file an application under Section 161 of the GST Act for correction of errors. GST Assessment: The petitioner, a dealer of plywood registered under the GST Act, challenged the assessment order dated 29.12.2023, which imposed a liability of Rs.3,16,79,698/- on IGST, interest of Rs.1,62,47,832/-, and a penalty of Rs.31,67,970. The respondent identified three defects including wrong claim of ITC, discount received without credit note, and lack of bank statement evidence for sundry creditors. The major liability was fixed on the head of Sundry Credit, where the dealer was required to pay consideration within 180 days from the date of purchase as per Section 16(2) of the Act. Incorrect Tax Liability Determination: The petitioner contended that he had paid the tax amount and provided the bank statement, but the assessing authority erroneously treated the entire purchase value of sundry credit as tax liability without deducting the ITC tax element. The petitioner argued that the total sundry credit as per IT returns was Rs.3,14,65,707/- with a tax component of 18%, yet the assessing authority reversed the entire purchase credit value without proper consideration. Right to File Application under Section 161 of GST Act: The learned Additional Government Pleader informed the court that the petitioner had the right to file an application under Section 161 of the GST Act to correct the error within 90 days. The petitioner was advised to file such an application if he had grievances against the amount determined in the assessment order. The court disposed of the writ petition with liberty granted to the petitioner to file an application under Section 161 of the GST Act along with necessary documents for the respondent's consideration, with costs not imposed. Separate Judgement: No separate judgment was delivered by the judge in this case.
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