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IN THE HIGH COURT OF
JUDICATURE AT MADRAS
DATED: 12.01.2024
CORAM: THE HONOURABLE
MR.JUSTICE SENTHILKUMAR RAMAMOORTHY
Writ Petition No.594 of
2024 and W.M.P.Nos.577 & 578 of 2024
Ingram Micro India Pvt.
Ltd.,
Represented by Shri.Rajat
Kumar Samal,
Director Finance, Branch
MF7,
CIPET Hostel Road,
Guindy,
Chennai~600 032. ... Petitioner
~vs~
State Tax Officer,
Guindy Assessment Circle,
Room No.253, 2nd floor,
Integrated Building for
CT &
Registration Department,
Nandanam, Chennai~600
035. ... Respondent
PRAYER: Writ Petition filed under Article 226 of the
Constitution of India, pleased to issue a Writ of Certiorari calling for record
relating to the impugned order bearing reference GST
No.33AABCT1296R1ZU/2017~2018 dated 21.12.2023 passed by the respondent and
quashing the same, as the impugned order being arbitrary, illegal, having been
passed in violation of the principles of natural justice and also in violation
of the second proviso to clause (d) of sub~section (2) of Section 16 of the GST
Acts and also in contravention of Articles 14, 19(1)(g) and 265 of the
Constitution of India.
For Petitioner :
Mr.G.Natarajan
For Respondent
: Mrs.K.Vasanthamala
Government Advocate
ORDER
1.
The petitioner challenges an order dated
21.12.2023 in respect of the assessment year 2017~2018.
2.
The petitioner stated that it is a
registered person under GST laws and that it had claimed Input Tax Credit (ITC)
under Section 16 of the CGST Act. In respect
thereof, it is stated that a show cause notice was issued with regard
to non~payment to the suppliers for
a period exceeding 180 days. In spite of the petitioner replying thereto and
providing all supporting documents, including the Chartered Accountant-s
certificate dated 20.12.2023, learned counsel for the petitioner submits that
the impugned order came to be issued on the basis of the total trade payables
of the petitioner.
3.
Mrs.K.Vasanthamala, learned Government
Advocate, accepts notice on behalf of the respondent. She submits that the
total trade payables of the company were taken into consideration because the
petitioner did not provide a proper break up of net trade payable relating to
the State of Tamil Nadu.
4.
In the impugned order, it is recorded as
under with regard to the alleged trade payables of Rs.2704.1 Crores: Findings
of the Assessing Authority:
The tax payer has stated that the
creditors noticed from PAN India basis. They have not produced Tamil Nadu
financial statement. They have simply stated in their contention there is no
such payment pending to their supplier. In the absence of such records,
contention put~forth by them is not acceptable. The proposal is hereby
confirmed.
From the above extract, it follows that the assessing
officer concluded that the entire trade payables of the company across India
should be taken as the trade payables because the petitioner did not provide
Tamil Nadu financial statements.
5.
Under the Companies Act, 2013, every
company is required to file financial
statements in respect of its entire operations and there is no provision for
filing State~specific financial statements. However, the petitioner has
submitted a certificate from a Chartered Accountant stating that the trade
payables attributable to the State of Tamil Nadu are Rs.1816.48 millions.
Learned counsel for the petitioner also submits that the petitioner would
provide all the invoices issued by the suppliers with regard to the aggregate
sum of Rs.1816.48 millions.
6.
The assessing authority has clearly not
applied its mind before drawing the conclusions extracted above. Therefore, the
impugned order is liable to be and is hereby quashed. Consequently, the matter
is remanded for reconsideration by the assessing authority. The assessing
authority is directed to take into consideration all relevant documents
produced by the petitioner, provide a reasonable opportunity to the petitioner
and issue a fresh order within a period of two months from the date of receipt
of a copy of this order. The writ petition is allowed on the above terms. There
will be no order as to costs. Consequently, connected Miscellaneous Petitions
are closed.
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