2023 (11) TMI 962 - HC - GST

Exemption from GST - outward supplies made to a Polytechnic (Vocational Institution) in terms of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT - A plain reading of the final audit observations, as approved by the Monitoring Committee, indicates that the demand was founded on the basis that the petitioner was not entitled to the benefit of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The impugned corrigendums only purported to correct the quantification of the tax recoverable on the aforesaid basis. Any alteration in the amount of tax on account of a computational error may not require specific approval of the Monitoring Committee. Prima facie, the impugned corrigendums or the impugned SCN are not liable to be set aside on the aforesaid ground. The premise on which the present petition is founded, does not hold good - Petition dismissed.

Summary

Issues Involved:
The issues involved in this case are the quashing of corrigendums, show cause notice, and the approval of the Monitoring Committee for tax recoverable on the basis of exemption claimed u/s Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.

Quashing of Corrigendums and Show Cause Notice:
The petitioner filed a petition seeking to quash a Corrigendum dated 25.08.2023 to ADT-02 dated 07.06.2023, another Corrigendum dated 28.08.2023 to DRC-01A dated 04.07.2023, and a Show Cause Notice dated 11.09.2023 issued by Respondent No. 2. The petitioner contended that these actions were not approved by the Monitoring Committee. The court observed that the demand was based on the petitioner not being entitled to the benefit of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, and the corrigendums aimed to correct the tax recoverable amount based on this. The court held that any alteration due to a computational error may not require specific approval of the Monitoring Committee. Thus, the court found that the corrigendums and the show cause notice were not liable to be set aside on the ground of lack of Monitoring Committee approval.

Monitoring Committee Approval:
The respondent's counsel informed the court that the impugned corrigendums were indeed approved by the Monitoring Committee at a meeting held on 17.08.2023. The court noted that the petitioner's premise for the petition, that the corrigendums were not approved by the Monitoring Committee, was factually incorrect. Consequently, the court dismissed the petition as the premise was found to be invalid. All pending applications were also disposed of accordingly.