2024 (9) TMI 1007 - HC - GST

Issuance of SCN in Form GST DRC-01, dated 21.08.2024, issued by the respondent - Refund claim - ineligible input tax credit - suppliers non-existent and involved in bill trading activities - HELD THAT - In the present case, the petitioner claimed ineligible input tax credit on purchases from the supplier, Tvl. Bharat Marketing, during the year 2022- 2023. The basis for this claim was the allegation that Bharat Marketing is a non-existent business entity and engaged in bill trading activities, as per the inspection report received from CBIC during a Special All India Drive targeting fake registrations and beneficiaries of bill trading. Consequently, the ITC for the petitioner s firm was blocked on 19.07.2024. The show cause notice in Form GST DRC-01 was issued on 16.08.2024, with the summary uploaded on 21.08.2024. It is important to note that the petitioner approached this Court without responding to the show cause notice. Procedural norms and principles of natural justice require that before seeking judicial intervention, the parties must respond to show cause notices to address the issues raised. Considering the fact that the petitioner did not respond to the show cause notice and has prematurely approached this Court, it is deemed inappropriate to entertain the challenge at this juncture. The appropriate course of action for the petitioner would be to submit a response to the show cause notice - Petition dismissed.

Summary

The High Court of Madras dismissed the writ petition seeking to quash a show cause notice in Form GST DRC-01 dated 21.08.2024, issued to the petitioner regarding ineligible input tax credit claimed from a supplier, Tvl. Bharat Marketing. The petitioner did not respond to the show cause notice before approaching the court, so the challenge was deemed premature and inappropriate. The court advised the petitioner to first respond to the notice and then seek judicial review if still aggrieved. The writ petition was dismissed without costs.