2024 (8) TMI 1452 - HC - GST

Violation of principles of natural justice - not providing of sufficient time to furnish the self declarations received from its suppliers - Challenge to assessment order - discrepancies in respect of the claim of ITC in GSTR-3B and GSTR-2A returns - petitioner had not furnished the required self-declarations of the suppliers - HELD THAT - Having regard to the grievance expressed by the petitioner, this court is inclined to grant an opportunity to the petitioner to substantiate their claim, for which, the learned counsel appearing for the respondent has no serious objection. Accordingly, the order impugned herein is set aside and the matter is remanded to the respondent for reconsideration. The petitioner is directed to file all the self-declarations obtained from its suppliers within a period of two weeks from the date of receipt of this order. The writ petition is disposed of.

Summary

Issues:
Challenge to assessment order for the assessment year 2017-18 due to discrepancies in Input Tax Credit (ITC) claim between GSTR-3B and GSTR-2A returns, violation of principles of natural justice, and request for an opportunity to submit self-declarations.

Analysis:
The petitioner, a registered dealer, challenged the assessment order for the assessment year 2017-18, citing discrepancies in the claim of ITC between GSTR-3B and GSTR-2A returns. The respondent issued a show cause notice regarding these discrepancies, to which the petitioner responded with self-declarations from suppliers. However, the respondent passed the impugned order hastily without allowing the petitioner to submit all self-declarations, leading to allegations of arbitrariness and violation of natural justice principles.

The petitioner contended that the discrepancy in ITC claims could be due to errors in GSTIN numbers or delayed filing of returns by suppliers. Despite providing evidence that there was no difference between GSTR-3B and GSTR-2A returns, the respondent did not grant additional time for submission of self-declarations from other suppliers. The petitioner argued that natural justice principles require a fair hearing before adverse decisions are made, emphasizing the need for an opportunity to present all relevant documents to support their claim.

On the other hand, the respondent's counsel argued that the petitioner had not submitted all required self-declarations at the time of the impugned order, justifying the decision taken. After hearing both parties and reviewing the case records, the court acknowledged the petitioner's grievance regarding inadequate time to furnish self-declarations from suppliers. The court found merit in the petitioner's request for an opportunity to substantiate their claim and ordered a remand to the respondent for reconsideration.

In its final decision, the court set aside the impugned order and directed the petitioner to submit all self-declarations from suppliers within two weeks. The respondent was instructed to review the submissions, provide a clear notice for a personal hearing, and issue appropriate orders promptly. The court disposed of the writ petition without costs, closing all related miscellaneous petitions.