GST UPDATE

Desk of CA. Praveen Sharma Series- 518

MADRAS HIGH COURT IN THE CASE OF Elite Natural Private Limited Section 73 of the CGST Act, 2017

These writ petitions challenge the assessment orders for 2019-2020, 2020-2021, and 2021-2022. The petitioner responded to show cause notices on 04.01.2024, addressing four tax proposals. Despite a personal hearing, the orders were issued without considering the petitioner's explanations and documents.

Petitioner's Arguments:

Excess ITC Claim: Asserted no excess ITC was claimed; the annual return (Table 8A) shows a higher ITC balance.

Credit Notes: Claimed net ITC was availed considering the credit notes.

Selling and Distribution Expenses: Explained these expenses are not taxable under GST.

Reverse Charge Mechanism (RCM): Stated that the items fall under the forward charge mechanism.

Respondent's Stand: Orders do not reference the petitioner's detailed reply.

Claimed the petitioner did not provide valid supporting documents.

Court's Findings:

Noted a failure by the respondent to engage with and provide reasons for rejecting the petitioner's submissions.

The orders lack adequate reasoning and cannot be sustained.

Conclusion : The impugned orders are set aside.

The matter is remanded for reconsideration with an opportunity for the petitioner to submit additional documents within 15 days.

The respondent must provide a personal hearing and issue fresh reasoned orders within three months.

This summary captures the key points of the case, emphasizing the arguments, court findings, and the final decision.

Read more: https://www.edatabook.com/c-detail/3888

Check Draft reply of GST Notice and Appeal format in our EdataBook

Stay tuned and Save my number for any query +91-9871530610.

CA. Praveen Sharma 

https://www.linkedin.com/in/capraveensh