GST UPDATE

Desk of CA. Praveen Sharma Series- 515 

MADRAS HIGH COURT in the case of Vijay Impex Section 73 of the CGST Act 

Writ Petition Challenging Reversal of Input Tax Credit

Challenge: The petitioner challenges an order dated 22.04.2024 reversing the Input Tax Credit (ITC) availed.

Assertion: The petitioner claims the ITC was correctly availed for supplies from M/s. Panjali Colours and responded to a show cause notice on 21.12.2023 and 31.01.2024.

Petitioner's Argument : The petitioner submitted all relevant documents and a supplier's certificate as per Circular No.183 dated 27.12.2022, contending the order is unsustainable.

Respondent's Argument: The Additional Government Pleader argues ITC was denied because the supplier did not file returns or pay taxes.

Court's Finding: The court noted the petitioner’s reply and documents, including the supplier’s certificate, were considered, and there was no violation of natural justice principles.

Conclusion: The court observed the reasons for rejecting the supplier's certificate and decided not to exercise discretionary jurisdiction. The petitioner can pursue the statutory remedy. The writ petition is disposed of with no costs.

Order Summary: The petitioner can avail of statutory remedies as the impugned order, dated 22.04.2024, considered the submitted documents and justified the rejection of the supplier’s certificate. The writ petition is dismissed, and the connected miscellaneous petition is closed.

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CA. Praveen Sharma 

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