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2024 (3) TMI 1272 - HC - GSTShort payment of GST on unreconciled sales turnover - non-reversal of Input Tax Credit (ITC) on account of rejection - reversal of ITC as regards the disparity between the GSTR 3B and GSTR 2A returns - short payment of GST on unreconciled sales turnover as declared in Form GSTR 3B - non reversal of ITC on account of rejection of goods received as inputs - HELD THAT - The impugned order warrants interference albeit by putting the petitioner on terms. By taking note of the heads of tax demand in the impugned order and the submissions made in respect thereof, it is found that a liability of Rs. 64,34,49,053/- was imposed merely on the finding that the petitioner was lethargic in rectifying the error committed while filing the GSTR 3B returns. If this amount is excluded and some allowance is made for the ITC reversal against the head relating to excess availment of ITC, the remittance of a sum of Rs. 5 crore as a condition for remand would safeguard revenue interest pending adjudication of remanded proceedings since it would be equivalent to approximately 10% of the remaining disputed tax demand. The impugned order dated 21.12.2023 is quashed and the matter is remanded for reconsideration subject to the condition that the petitioner remits a sum of Rs. 5 crore towards the disputed tax demand within a period of three weeks from the date of receipt of a copy of this order. Subject to being satisfied that the said sum of Rs. 5 crore was received, the assessing officer is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within three months from the date of receipt of the above amount. Petition disposed off.
Issues involved: Challenge to order in original u/s assessment period 2017-18.
First Issue: Short payment of GST on unreconciled sales turnover The petitioner disclosed the same turnover thrice in GSTR 3B return due to initial year of GST implementation. The assessing officer held against the petitioner for lethargy in maintaining accounts despite rectification in GSTR 9 annual return. Second Issue: Non-reversal of Input Tax Credit (ITC) on account of rejection Petitioner faced defective goods situation and had options to reverse ITC either by requesting credit note from supplier or returning goods under invoice. Circular No. 72/46/2018-GST allowed returning goods as fresh supply. Third Issue: Reversal of ITC by petitioner Petitioner reversed ITC of almost Rs. 28 crore, but assessing officer disregarded this fact leading to unsustainable tax demand of about Rs. 115 crore out of total demand of Rs. 117 crore. Fourth Issue: Objection to impugned order Respondent's counsel argued that impugned order considered petitioner's reply and provided personal hearing, hence no interference is warranted under Article 226 of the Constitution of India. Conclusion The High Court quashed the impugned order dated 21.12.2023 and remanded the matter for reconsideration with a condition for the petitioner to remit Rs. 5 crore towards disputed tax demand within three weeks. Assessing officer directed to provide a reasonable opportunity to petitioner and issue a fresh order within three months from the date of receipt of the amount.
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