![]()
BEFORE THE MADURAI BENCH
OF MADRAS HIGH COURT
DATED : 08.02.2024
CORAM: THE HONOURABLE
MR.JUSTICE B.PUGALENDHI
W.P.(MD)No.2617 of 2024
and W.M.P.(MD)Nos.2637 and 2639 of 2024
Theni Ply Woods,
Rep. by its Partner
R.S.Rajasekaran,
S.F.No.286/1, Theni
Plywoods,
Madurai Main Road,
Theni ? 625 531. ...
Petitioner
versus
The Assistant
Commissioner (ST),
Theni ? 1 Assessment
Circle,
Theni. ...
Respondent
Writ Petition filed under
Article 226 of the Constitution of India, seeking for the issuance of Writ of
Certiorarified Mandamus, to call for the impugned assessment order on the file
of the respondent vide GSTIN: 33AACFT4622K1Z9/2017~18 dated 29.12.2023 and
quash the same as illegal and devoid of merits and direct the respondent to
redo the assessment proceedings for the year 2017~18.
For Petitioner : Mr.Raja Karthikeyan
For Respondents:
Mr.A.Baskaran,
Additional
Government Pleader
ORDER
1.
The petitioner is a dealer of plywood and
he has registered under the GST Act. The
petitioner has filed this writ petition as against the assessment order dated
29.12.2023. By the impugned assessment
order dated 29.12.2023, the respondent has fixed the liability to the tune of
Rs.3,16,79,698/~ on the head of IGST and interest of Rs.1,62,47,832/~ with a
penalty of Rs.31,67,970/~.
2.
The case of the petitioner is that the
respondent issued a show cause notice pointing out certain defects, for which,
the petitioner has submitted his reply.
After the scrutiny, the respondent sustained three defects as under:
i.
Wrong claim of ITC ? mismatch between
GSTR~3B and GSTR 2A.
ii.
Discount received from the seller ? credit
note not produced.
iii.
Sundry creditors ? we have not produced
bank statement evidence.
3.
The major liability was fixed in the head
of Sundry Credit. As per Section 16(2)
of the Act, the dealer has to pay the consideration towards the credit purchase
within 180 days from the date of purchase and if not paid the consideration
within 180 days, the dealer shall reverse the ITC to the extent of tax paid
inward supply.
4.
The petitioner claims that he has paid the
tax amount and he has also enclosed the Bank Statement. However, the respondent has passed an order
treating the entire purchase value of sundry credit as tax liability, instead
of deducting the ITC Tax element involved on the sundry creditors.
5.
According to him, the total sundry credit
as per the IT returns is Rs.3,14,65,707/~ and the tax component for this
purchase value is 18%. However, the
assessing authority, without considering the same, has considered the entire
value of purchase as a tax amount as ITC and wrongly reversed the entire
purchase credit value to the tune of Rs.3,14,65,707/~.
6.
Mr.A.Baskaran, learned Additional
Government Pleader, who takes notice for the respondent, submits that the
petitioner is having a right of filing an application under Section 161 of GST
Act to correct the error before the concerned authority within a period of 90
days. If the petitioner is having any
grievance as against the amount arrived in the assessment order, he can very
well file an application under Section 161 of GST Act, within a period of 90
days.
7.
Considering the submission of the learned
Additional Government Pleader, this writ petition is disposed of with a liberty
to the petitioner to file an application under Section 161 of GST Act along with the required documents. On filing such application, the respondent
shall consider the same in accordance with law.
No costs. Consequently, connected
miscellaneous petitions are closed.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
Click here
