2024 (3) TMI 966 - HC - GST

Validity of assessment order - fraudulent availment of Input Tax Credit (ITC) - documents produced by the petitioner were disregarded - issuance of fake invoices - HELD THAT - The documents produced by the petitioner along with the reply to intimation and reply to show cause notice were disregarded and the assessing officer reproduced the statements from the show cause notice. Since there was no application of mind, the impugned assessment order is not sustainable. The impugned assessment order dated 23.08.2023 is quashed and the matter is remanded for re-consideration. After providing a reasonable opportunity to the petitioner, including a personal hearing, the assessing officer is directed to issue a fresh assessment order within two months. The petitioner is granted leave to submit additional documents to establish that the availment of ITC was in order. Petition disposed off.

Summary

Issues Involved:
The petitioner challenges an assessment order primarily on the ground that documents produced were disregarded.

Details of the Judgment:

Issue 1: Disregard of Documents
The petitioner, a dealer in granite slabs registered under GST enactments, received an intimation alleging fraudulent Input Tax Credit (ITC) availing. The petitioner refuted the charge and attached requisite documents in response. Despite this, a show cause notice was issued, alleging the petitioner benefited from fake invoices. The petitioner responded by pointing out the inapplicability of the e-way bill system to the relevant supply and provided transport invoice and bank statement. However, the assessment order did not discuss these documents, leading to the challenge. The respondent contended that the petitioner failed to establish the genuineness of transactions by not providing all relevant documents, despite notice of fake invoices from a specific supplier.

Issue 2: Lack of Consideration of Documents
The assessment order confirmed a tax liability, stating that the petitioner only uploaded invoice copies and not the e-way bill copy. This led to the direction to pay the tax amount, interest, and penalty by a specified date, failing which further action would be taken. The court noted that the documents attached by the petitioner were disregarded, and the assessing officer merely reproduced statements from the show cause notice, indicating a lack of application of mind and rendering the assessment order unsustainable.

Decision:
The High Court quashed the assessment order and remanded the matter for re-consideration. The assessing officer was directed to issue a fresh assessment order within two months, providing the petitioner with a reasonable opportunity, including a personal hearing. The petitioner was granted leave to submit additional documents to support the ITC claim. The case was disposed of with no costs, and related motions were closed.