2024 (12) TMI 926 - HC - GST

Challenge to impugned order under Section 73 of the Tamil Nadu Goods and Service Tax Act, 2017/Central Goods and Service Tax Act, 2017 including the Summary of the Order in Form GST DRC-07 - Non- Reversal Input Tax Credit ITC on account of Credit Notes issued by the Petitioner's suppliers, which is reflecting in Form GSTR-2A - HELD THAT - Since, the order is made on the basis of the statement made by the learned counsel for the petitioner that 10% of the disputed tax has been remitted already, the respondents may verify the same. If the statement made by the learned counsel for the petitioner regarding the payment of 10% of disputed taxes is incorrect, the respondents authority shall intimate the same to the petitioner who shall deposit 25% of disputed taxes within 4 weeks from the date of such intimation. Subject to verification of payment of the entire disputed taxes or on payment of 25% of disputed taxes, attachments if any, would be lifted. The impugned orders are set aside and the petitioner shall deposit 25% of the disputed tax within a period of four weeks from the date of receipt of a copy of this order. The respondents authority shall take into account the amount remitted by the petitioner in excess of the admitted tax, while reckoning 25% of the disputed tax. On complying with the above condition, the impugned order of assessment shall be treated as show cause notice and the petitioner shall submit its objections within a period of four weeks from the date of receipt of a copy of this order along with supporting documents/material. Petition disposed off.

Summary

Issues:
Challenge to impugned order under Section 73 of the Tamil Nadu Goods and Service Tax Act, 2017/Central Goods and Service Tax Act, 2017; Allegations of Non-Reversal of Input Tax Credit (ITC) by the Petitioner's suppliers; Lack of personal hearing opportunities for the Petitioner; Service of show cause notices and order of assessment through the common portal; Rejection of appeal due to delay in filing; Request for explanation of alleged discrepancies and reliance on a recent judgment; Proposal to pay 25% of disputed tax and lifting of bank attachment; Setting aside of impugned orders and conditions for depositing disputed tax, submission of objections, and lifting of bank attachment; Disposal of the writ petition with no costs.

Analysis:

The writ petition was filed to challenge the impugned order under Section 73 of the Tamil Nadu Goods and Service Tax Act, 2017/Central Goods and Service Tax Act, 2017. The Petitioner, a private limited company registered under the GST Acts, received a notice alleging Non-Reversal of Input Tax Credit (ITC) due to credit notes issued by its suppliers. The First Respondent issued a Summary of Show Cause Notice proposing a demand of Rs. 60,97,044/-, including interest and penalty, for FY 2017-18. The Petitioner claimed lack of sufficient personal hearing opportunities during the adjudication process, raising concerns about the service of notices and orders through the common portal.

The impugned orders were challenged on the grounds of inadequate service methods and the Petitioner's inability to participate effectively in the adjudication proceedings due to portal access issues. The Petitioner's appeal was rejected based on a filing delay. The Petitioner sought an opportunity to explain discrepancies, citing a recent judgment for support. Additionally, the Petitioner proposed to pay 25% of the disputed tax and requested the lifting of a bank attachment.

The Court set aside the impugned orders and directed the Petitioner to deposit 25% of the disputed tax within four weeks. The amount remitted in excess of the admitted tax would be considered. The Petitioner was granted the opportunity to submit objections with supporting documents within four weeks. Failure to comply within the stipulated period would result in the revival of the impugned order. Recovery proceedings, including bank attachments, were to be lifted upon payment of the required amount within two weeks.

Ultimately, the writ petition was disposed of with no costs, and connected miscellaneous petitions were closed, concluding the legal proceedings related to the dispute.