Tvl. Nagarajan Pavithra Vs Union of India
Date: June 24, 2024
Subject Matter
Principles of natural justice were complied with: No intervention in GST order
Summary
The writ petition challenges an assessment order dated 29.04.2024, which was issued in response to a show cause notice dated 28.12.2023. The petitioner was required to explain the failure to report correct tax liability in annual returns (Form GSTR 9). The petitioner's counsel argues that the inward supply was not reported while filing the monthly and annual returns, and Input Tax Credit (ITC) was available in the auto-populated GSTR 2A. The respondents argue that the petitioner is no longer entitled to ITC due to failure to file returns within the prescribed time limit and that the principles of natural justice were complied with. The petitioner's reply claiming clerical errors in the returns was considered in the assessment order. The court disposed of the case without any order as to costs, leaving it open to the petitioner to avail of the statutory remedy.
An assessment order dated 29.04.2024 is challenged in this writ petition. The petitioner received show cause notice dated 28.12.2023. By such show cause notice, the petitioner was called upon to show cause in respect of failure to report correct tax liability while filing the annual returns in Form GSTR 9. The petitioner replied to such show cause notice on 16.04.2024. The impugned assessment order was issued thereafter.
2. Learned counsel for the petitioner submits that the petitioner failed to report inward supply while filing the monthly returns and the annual return for financial year 2018-2019. He further submits that Input Tax Credit (ITC) of Rs.5,40,185/- was available in the auto-populated GSTR 2A. In those circumstances, he submits that the tax proposal for Rs.2,71,465/-each towards CGST and SGST was confirmed without taking these aspects into account.
3. Mr. Ramesh Kutty, learned senior standing counsel, accepts notice for respondents 1 to 3. Mr.C.Harsha Raj, learned Additional Government Pleader, accepts notice for respondents 4 to 7. Both of them submit that the petitioner is no longer entitled to ITC since the petitioner failed to file returns within the time limit prescribed in sub-section (4) of Section 16. In addition, they submit that the petitioner’s reply was taken into consideration and that principles of natural justice were complied with.
4. The petitioner has placed on record show cause notice dated 28.12.2023 and the reply dated 16.04.2024. By such reply, the petitioner asserts that both the GSTR 3B and 9 returns contained clerical errors. This reply was taken into consideration in the impugned order while confirming the tax proposal. In these circumstances, it cannot be said that principles of natural justice were violated. Consequently, I am not inclined to exercise discretionary jurisdiction.
5. For reasons set out above, W.P.No.15713 of 2024 is disposed of without any order as to costs by leaving it open to the petitioner to avail of the statutory remedy. Consequently, connected miscellaneous petitions are closed.