Saamy Trading Vs Assistant Commissioner (ST)
Date: April 29, 2024
Subject Matter
Excess ITC claim: Dept. to consider rectification application in a time bound manner
Summary
The petitioner filed a Writ Petition requesting a Mandamus to direct the tax authority to reassess and issue a rectification order regarding an earlier assessment dated July 2, 2024, where the petitioner claimed an excess Input Tax Credit (ITC). The tax authority had raised a demand of Rs. 3,79,336 and interest of Rs. 4,013, without considering vital facts regarding Reverse Charge Mechanism (RCM) payments previously made by the petitioner. The petitioner's rectification application dated March 27, 2025, went unanswered, prompting the filing of the Writ Petition. The court, noting the Government Advocate's assurance of timely consideration of the application, decided to direct the respondent to address the rectification request within four weeks.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Heard Mr.M.Sivakumar learned counsel appearing for the petitioner and Mrs.K.Vasanthamala, learned Government Advocate (T) who takes notice on behalf of the respondent. With consent, the main Writ Petition is taken up for final disposal at the stage of admission itself.
2. The petitioner has filed this Writ Petition seeking for issuance of a Writ of Mandamus to direct the respondent to reassess and pass rectification order in respect of the application dated 27.03.2025 within a time frame.
3. The learned counsel for the petitioner would submit that the petitioner has filed a Rectification Application dated 27.03.2025 requesting the respondent to reassess the order passed by him dated 02.07.2024, however, the said Application has not evoked any response, hence, the present Writ Petition is filed seeking for aforesaid relief.
4. The learned Government Advocate (T) for the respondent would submit that the Application made by the petitioner would be considered and disposed of within the time limit as prescribed by this Court.
5. The grievance expresses by the petitioner is that, the respondent has passed an order dated 02.07.2024, alleging excess ITC claim made by the petitioner for the assessment year 2020-21, and raised a tax demand of Rs.3,79,336 with interest of Rs.4,013. According to the petitioner, the said order has been passed by the respondent without taking into consideration of the vital fact of the RCM payments already made by the petitioner. Therefore, setting out such facts, the petitioner filed an Application dated 27.03.2025 seeking rectification of the order dated 02.07.2024. However, since no order has been passed in the said Application, the petitioner has filed this Writ Petition seeking for appropriate direction.
6. Thus, this Court, considering the limited scope of the prayer, sought for by the petitioner, in this Writ Petition and also taking into the submission made by the learned Government Advocate for the respondent, without expressing any view with regard to the merits of the contentions putforth by the petitioner in the Writ Petition, is of the view that, suffice it would be to direct the respondent to consider and dispose of the petitioner’s Application dated 27.03.2025 in a time bound manner.
7. Accordingly, the Writ Petition is disposed of with a direction to the respondent to consider the Application made by the petitioner dated 27.03.2025 and dispose of the same as early as possible, preferably, within a period of four weeks from the date of receipt of a copy of this order. No costs. Consequently, connected Miscellaneous Petition is closed.