2023 (11) TMI 1201 - HC - GST

Validity of impugned Assessment order - seeking to demand the input tax credit availed by the petitioner on the strength of invoices raised by one M/s.C.A.Gowtham Steels - HELD THAT - Although the order passed by the respondent cannot be faulted as the petitioner has failed to respond to notice in DRC -01 dated 11.03.2023 issued for the respective Assessment years, the fact remains that the dispute pertains to input tax credit availed by the petitioner on the suppliers allegedly made by M/s.C.A.Gowtham Steels to the petitioner. Considering the fact that the order has been passed in favour of the petitioner's sister company namely M/s.Tarsun Steels India (P) Limited, Court is inclined to set aside the impugned order and remits the cases back to the respondent to pass a fresh order on merits and in accordance with law. It is open for the respondent to pass a fresh order on merits after considering the aforesaid order of the Central Authority dated 10.02.2023. Petition disposed off.

Summary

Issues Involved:
Challenging the Assessment order confirming demand for input tax credit availed based on invoices from a supplier.

Summary:
In two writ petitions, the petitioner challenged the Assessment order confirming the demand for input tax credit availed based on invoices from M/s.C.A.Gowtham Steels for the Assessment years 2018-2019 and 2019-2020. The petitioner's sister company was found eligible for the credit, but the petitioner was denied the credit for similar supplies from the same supplier, leading to the challenge of the impugned order as being perverse.

The respondent defended the impugned order, stating the petitioner failed to respond to notices and had the option to file a Statutory Appeal under Section 107 of the CGST Act, 2017. The respondent argued that disputed factual questions should be decided by the Authorities under the GST enactments, suggesting dismissal of the writ petitions with liberty to approach the Appellate forum.

The Court found that although the petitioner failed to respond to notices, the dispute regarding input tax credit availed from M/s.C.A.Gowtham Steels needed further examination. Given the favorable order for the petitioner's sister company, the Court set aside the impugned order and remitted the cases back to the respondent for a fresh order considering the Central Authority's decision in the sister company's case. The petitioner was directed to submit all records before the Authorities.

The writ petitions were disposed of with no costs, and the connected writ miscellaneous petitions were closed.