2024 (6) TMI 988 - HC - GST

Challnege to assessment order - disallowance of input tax credit - HELD THAT - A reminder notice was issued on 12.09.2022. However no reply was filed to the reminder notice as well. The 2nd reminder notice was issued to the petitioner in accordance with State Circular No. 07/2023 dated 12.01.2023. However, no reply was given to the 2nd reminder notice as well. The petitioner was also given an opportunity to submit his reply/objections/proof at the time of personal hearing which was scheduled on 20.06.2023. The authorised person of the petitioner appeared for personal hearing on 20.06.2023 and submitted a request asking more time for filing detailed reply and producing evidence in proof of their claims. Thereafter, no detailed reply was filed and no document was produced. Further notices were issued to the petitioner on 29.07.2023 and 210.10.2023, however, no reply was filed by the petitioner herein. There had been ample opportunities given to the petitioner to prove his claim by submitting documentary evidence regarding their claim for ITC claimed in their return. The petitioner had never come forward to submit any reply as it is evident from the assessment order itself, and now the petitioner is making a prayer for the matter to be remanded back. There are no substance in this writ petition, which is hereby dismissed.

Summary

Issues involved:
Challenge to assessment order disallowing input tax credit and raising total demand.

Details of the Judgment:

Issue 1: Disallowance of input tax credit and raising total demand
The petitioner, a registered dealer under CGST/SGST Act, challenged the assessment order disallowing input tax credit and raising a total demand of Rs. 34,74,860. Discrepancies were noticed in the petitioner's annual GST return for the financial year 2017-2018. Despite being served with notices and reminders, the petitioner failed to provide detailed replies or submit relevant documents to support their claim. The petitioner was given multiple opportunities to prove their claim for input tax credit, including a personal hearing where they requested more time but still did not provide the required information. The court noted the petitioner's conduct in not availing the opportunities provided since September 2020 to October 2023. As there was no procedural impropriety or violation by the assessing authority, the court dismissed the writ petition, finding no substance in the petitioner's arguments.

This judgment highlights the importance of timely and substantiated responses to notices and opportunities provided during assessment proceedings under the CGST/SGST Act, emphasizing the need for taxpayers to actively participate and provide necessary documentation to support their claims.