TVI Swastik Enterprise v. Dy. CST & Anr.

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The Tax Publishers 2024 TaxPub(GST) 891 (Mad-HC) IN THE MADRAS HIGH COURT J. SATHYA NARAYANA PRASAD TVI Swastik Enterprise v. Dy. CST & Anr. W.P. No. 6193 of 2024 and W.M.P. No. 6861 of 2024 8 March, 2024 Petitioner by: Ramesh Venkatachalapathy Respondents by: V.Prashanth Kiran Government Advocate (Tax) ORDER This writ petition is filed for issuance of a Writ of Certiorari, to quash the impugned order of the 1st respondent vide R.C.No.7/2024/A1 dated 22-2-2024. 2. The case of the petitioner is that they are doing business dealing with iron and steel materials falling under HSN 7213. They have obtained GST No.33BFVPR9592D1ZO and they are also regularly filing GST returns. During the course of business in the assessment year 2020-2021, the petitioner made purchases from M/s. SLO Industries Limited. The registration certificate of the seller is valid under the GST Act, 2017 and the supplies were duly reflected in GSTR-2A, based on that the petitioner has taken Input Tax Credit (ITC). However, the department issued ASMT-10 on 22-2-2023, wherein it was alleged that the supplier M/s.SLO Industries Limited has failed to furnish GSTR-3B returns and has also failed to pay taxes consequentially the input tax credit availed by the petitioner to be recovered on the pretext of contravention of Section 16(2)(c) of the CGST Act/ TNGST Act, 2017. Subsequently, the department issued a show cause notice on 18-4-2023 under section 74 of the Act. For which the petitioner filed a reply on 17-5-2023 by Form GSTR-06. In the show cause notice itself, the date of the personal hearing was mentioned as 18-5-2023. Without considering any submission, the adjudication authority passed order on 02-8-2023 and a DRC-07 notice on 03-8-2023. However, the petitioner has not noticed the impugned order and the petitioner was under the bona fide belief that the 1st respondent is satisfied with the reply dated 17-5-2023 vide Form GST DRC- 06 to SCN and therefore the matter is in abeyance. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2024 TaxPub(GST) 891 (Mad-HC)

IN THE MADRAS HIGH COURT

J. SATHYA NARAYANA PRASAD

TVI Swastik Enterprise v. Dy. CST & Anr.

W.P. No. 6193 of 2024 and W.M.P. No. 6861 of 2024

8 March, 2024

Petitioner by: Ramesh Venkatachalapathy

Respondents by: V.Prashanth Kiran Government Advocate (Tax)

ORDER

This writ petition is filed for issuance of a Writ of Certiorari, to quash the impugned order of the 1st respondent vide R.C.No.7/2024/A1 dated 22-2-2024.

2. The case of the petitioner is that they are doing business dealing with iron and steel materials falling under HSN 7213. They have obtained GST No.33BFVPR9592D1ZO and they are also regularly filing GST returns. During the course of business in the assessment year 2020-2021, the petitioner made purchases from M/s. SLO Industries Limited. The registration certificate of the seller is valid under the GST Act, 2017 and the supplies were duly reflected in GSTR-2A, based on that the petitioner has taken Input Tax Credit (ITC). However, the department issued ASMT-10 on 22-2-2023, wherein it was alleged that the supplier M/s.SLO Industries Limited has failed to furnish GSTR-3B returns and has also failed to pay taxes consequentially the input tax credit availed by the petitioner to be recovered on the pretext of contravention of Section 16(2)(c) of the CGST Act/ TNGST Act, 2017. Subsequently, the department issued a show cause notice on 18-4-2023 under section 74 of the Act. For which the petitioner filed a reply on 17-5-2023 by Form GSTR-06. In the show cause notice itself, the date of the personal hearing was mentioned as 18-5-2023. Without considering any submission, the adjudication authority passed order on 02-8-2023 and a DRC-07 notice on 03-8-2023. However, the petitioner has not noticed the impugned order and the petitioner was under the bona fide belief that the 1st respondent is satisfied with the reply dated 17-5-2023 vide Form GST DRC- 06 to SCN and therefore the matter is in abeyance.