2024 (10) TMI 1428 - HC - GST

Challenge to assessment orders - levy of GST on reverse charge basis on seigniorage fees - levy of GST on forward charge basis based on sales turnover - non-application of mind - violation of principles of natural justice - HELD THAT - Insofar as the assessment orders deal with seigniorage charges, the directions issued in paragraph 9 of the Division Bench Judgment in a batch of cases where the lead case is A.Venkatachalam v. Assistant Commissioner (ST), Palladam, in W.P.No.30974 of 2022 2024 (2) TMI 488 - MADRAS HIGH COURT squarely apply. However, with regard to the imposition of GST on forward charge basis on turnover, the impugned assessment orders record the objections of the petitioner. The objection, in each case, is based on the declared taxable turnover of the petitioner. The petitioner contends that taxes were paid on the basis of the declared taxable turnover and that, therefore, the impugned assessment orders were issued mechanically without application of mind. On examining the impugned assessment orders, especially the extraction of the petitioner's objections with regard thereto, the contention of learned counsel for the petitioner is liable to be accepted. As a consequence, on this aspect, the impugned assessment orders call for interference. The assessment orders impugned herein are quashed only insofar as such orders deal with the imposition of GST on forward charge basis on the turnover. Consequently, these matters are remanded for re-consideration on such aspect - Petition disposed off.

Summary

The High Court of Madras quashed assessment orders challenging the imposition of GST on forward charge basis on turnover. The matters are remanded for re-consideration within two months, with the assessing officer directed to provide a reasonable opportunity to the petitioner. The court disposed of the writ petitions without costs.