Remanded

M/S.Hatsun Agro Product Ltd. v. the Deputy Commissioner (St) -Ii

Madras HC15 Jun 2023WP/17861/2023

Case brief

AI extract

What is this about?

The High Court set aside the GST assessment order dated 17.03.2023 as violative of natural justice for failing to put specific ITC reversal determinations to the petitioner during show cause proceedings. The order was treated as a show cause notice with the hearing fixed for 13.07.2023.

What did the court decide?

Impugned assessment order set aside and treated as a show cause notice; matter remanded for hearing on 13.07.2023.

M/S.Hatsun Agro Product Ltd. Vs the Deputy… — Writ and Judicial Review | Madras HC (2023)

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W.P.No.17861 of 2023

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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Dated: 15.06.2023

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CORAM

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THE HONOURABLE DR. JUSTICE ANITA SUMANTH

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W.P.No.17861 of 2023 and WMP Nos.16983 & 16984 of 2023

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M/s.Hatsun Agro Product Ltd. Represented by its Director D.Sathyanarayan No.14, Tamil Nadu Housing Board “A” Road, Sholinganallur, Chennai-600 119

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... Petitioner

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1.The Deputy Commissioner (ST) – II

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Office of the Joint Commissioner (ST) Large Taxpayers Unit, Chennai-600 035

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2.The Deputy Commissioner (CT) – LTU Tamil Nadu State/UT – LTU DC2: LT-DC2:LTU Tamil Nadu, Chennai.

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3.State Tax Officer, Large Taxpayers Unit, Chennai-600 035. ... Respondents

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PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorari to call for the records on the file of the First Respondent in Order dated 17.03.2023 in File GSTIN/33AAACH0945G1Z0/2021-2022, and quash the same as illegal, https://www.mhc.tn.gov.in/judis arbitrary, unconstitutional and violative of the principles of natural justice.

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For Petitioner : Mr.S.Muthu Venkatraman For Respondents : Mr.V.Prashanth Kiran Government Advocate

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W.P.No.17861 of 2023

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O R D E R

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Mr.V.Prashanth Kiran, learned Government Advocate accepts notice for

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the respondents and is armed with instructions to enable a final disposal of this matter, even at the stage of admission.

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The impugned order is one of assessment dated 17.03.2023, passed under the provisions of the Tamil Nadu Goods and Services Tax Act, 2017 (in short 'Act'). The issue relates to reversal of Input Tax Credit (ITC), which, in the opinion of the Assessing Officer is ineligible and ought not to have been claimed.

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Prior to the impugned order, which is a culmination of proceedings for assessment under Section 73 of the Act, the Assessing Authority had issued notices in DRC-01A and ASMT -10 calling for identical particulars as were required for the presnt impugned proceedings as well.

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While it is the petitioner's case that those particulars have been supplied, learned Government Advocate would submit that the particulars have to be supplied in a tabulation that was specifically put to the petitioner.

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https://www.mhc.tn.gov.in/judis

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W.P.No.17861 of 2023

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To be noted, the manner in which the respondent has sought the

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information along with supporting particulars incuding invoices is clearly set

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out in communication dated 09.09.2022 as follows:

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Inward Supplies – (GSTR 2B Vs. GSTR -3B):

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IT IGST	*C AS PE* CGST	*R GSTR-3* SGST	B CESS	IT IGST	*C AS PE* CGST	*R GSTR-2* SGST	B CESS	IGST	*DIFFE* CGST	*RENCE* SGST	CESS
42,11,	23,38,	23,38,	68,814	87,50,	61,71,	61,71,	94,27,	45,38,	38,32,	38,32,	93,58,
50,343	28,698	28,698		22,741	05,196	05,195	162	72,398	76,498	76,497	348

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Further, the tax payer is requested to furnish the details of Input Tax Credit availment for the year 2021-22 as detailed below:

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a) Categorisation of ITC

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*Month*	*ITC*	*AS PER GSTR 2B*	*Eligib*	*le ITC in*	*GSRT-2B*		*Not eligible ITC*
	SGST	CGST IGST	SGST	CGST	IGST	SGST	CGST IGST

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b) Eligible ITC

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*HSN*	In	*ward su*	*pply v*	*alue*		*Taxes paid*
	Intra State	Inter S	tate	Import	SGST	CGST IGST
n eligi	ble ITC *GSTIN*		In	*ward supply*	*value*	*Tax paid*

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c) In eligible ITC

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It is unclear as to whether the particulars have been supplied in this

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specific manner and whether the entirety of the supporting documents have been produced before the Assessing Officer.

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https://www.mhc.tn.gov.in/judis

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W.P.No.17861 of 2023

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However, a perusal of the impugned order makes it clear that it is only

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in paragraph 5 onwards that the Assessing Officer has embarked on the

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determination/crystallisation of the amount to be reversed on a comparison of the ITC claimed under GSTR 3B and GSTR 2B.

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This determination, in the considered view of the Court, ought to have been put to the petitioner in the show cause notice itself prior to passing of the impugned order, such that the petitioner had been afforded sufficient opportunity to respond the same and, or provide details in support of the claim of ITC.

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Prior to the impugned order of assessment, what was exchanged was only general notices calling for particulars to which the petitioner is seen to have responded, albeit, insufficiently.

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Thus, and in the interests of substantial justice, impugned order of assessment dated 17.03.2023 is set aside and shall be treated as a show cause notice by the petitioner, who shall appear along with all details in support of the reversal under the impugned order on Thursday, the 13^th July, 2023, at the specific request of the learned counsel for the petitioner, without expecting any further notice in this regard.

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Though this Court is reluctant to fix such a long date of hearing, the request of learned counsel for the petitioner is acceded to, as the authorised

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https://www.mhc.tn.gov.in/judis

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W.P.No.17861 of 2023

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representative is stated to be a super senior citizen, who is 84 years old and it is in consideration of the same that the matter is fixed on 13.07.2023. No adjournment shall be sought on that day and if the petitioner does not appear on that day along with the supporting materials, the benefit granted under this

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order shall stand withdrawn without further reference to the petitioner.

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After hearing the petitioner and consideration of materials, if any supplied in support of the show cause notice, let an order be passed within a period of six (6) weeks from date of personal hearing, i.e., on or before 25.08.2023, in accordance with law.

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This Writ Petition stands disposed as above. No costs. Connected Miscellaneous Petitions are closed.

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15.06.2023

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Index : Yes Speaking Order Neutral citation:Yes sl

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1.The Deputy Commissioner (ST) – II Office of the Joint Commissioner (ST) Large Taxpayers Unit, Chennai-600 035

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2.The Deputy Commissioner (CT) – LTU Tamil Nadu State/UT – LTU DC2: LT-DC2:LTU Tamil Nadu, Chennai.

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https://www.mhc.tn.gov.in/judis

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W.P.No.17861 of 2023

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3.State Tax Officer, Large Taxpayers Unit, Chennai-600 035.

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Dr.ANITA SUMANTH,J.

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W.P.No.17861 of 2023 and WMP Nos.16983 & 16984 of 2023

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15.06.2023

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https://www.mhc.tn.gov.in/judis

M/S.Hatsun Agro Product Ltd. v. the Deputy Commissioner (St) -Ii

Case brief

What is this about?

What did the court decide?

M/S.Hatsun Agro Product Ltd. v. the Deputy Commissioner (St) -Ii

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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