Writ petition challenging denial of Input Tax Credit. Court quashed order allowing assessment under total trade payables despite lack of State-specific breakup in law, remanding matter for reconsideration. Allowed on terms.
Impugned order dated 21.12.2023 quashed. Matter remanded for reconsideration with reasonable opportunity of hearing.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
W.P.No.594 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 12.01.2024
CORAM
THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY Writ Petition No.594 of 2024 and W.M.P.Nos.577 & 578 of 2024
Ingram Micro India Pvt. Ltd., Represented by Shri.Rajat Kumar Samal, Director Finance, Branch MF7, CIPET Hostel Road, Guindy, Chennai-600 032. ... Petitioner
-vs-
State Tax Officer, Guindy Assessment Circle, Room No.253, 2nd floor, Integrated Building for CT & Registration Department, Nandanam, Chennai-600 035. ... Respondent
PRAYER: Writ Petition filed under Article 226 of the Constitution of
India, pleased to issue a Writ of Certiorari calling for record relating to the impugned order bearing reference GST No.33AABCT1296R1ZU/20172018 dated 21.12.2023 passed by the respondent and quashing the same, as
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the impugned order being arbitrary, illegal, having been passed in violation
of the principles of natural justice and also in violation of the second proviso
to clause (d) of sub-section (2) of Section 16 of the GST Acts and also in contravention of Articles 14, 19(1)(g) and 265 of the Constitution of India.
For Petitioner : Mr.G.Natarajan
For Respondent : Mrs.K.Vasanthamala Government Advocate
ORDER
The petitioner challenges an order dated 21.12.2023 in respect of the assessment year 2017-2018.
and that it had claimed Input Tax Credit (ITC) under Section 16 of the CGST Act. In respect thereof, it is stated that a show cause notice was issued with regard to non-payment to the suppliers for a period exceeding 180 days. In spite of the petitioner replying thereto and providing all supporting documents, including the Chartered Accountant's certificate dated 20.12.2023, learned counsel for the petitioner submits that the impugned order came to be issued on the basis of the total trade payables of
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the petitioner.
“Findings of the Assessing Authority:
The tax payer has stated that the creditors noticed from PAN India basis. They have not produced Tamil Nadu financial statement. They have simply stated in their contention there is no such payment pending to their supplier. In the absence of such records, contention put-forth by them is not acceptable. The proposal is hereby confirmed.”
From the above extract, it follows that the assessing officer concluded that the entire trade payables of the company across India should be taken as the
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statements.
trade payables because the petitioner did not provide Tamil Nadu financial statements.
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fresh order within a period of two months from the date of receipt of a copy of this order. The writ petition is allowed on the above terms. There will be no order as to costs. Consequently, connected Miscellaneous Petitions are closed.
12.01.2024
Index : Yes / No Internet : Yes / No Neutral Citation: Yes / No kj
To
State Tax Officer, Guindy Assessment Circle, Room No.253, 2nd floor, Integrated Building for CT & Registration Department, Nandanam, Chennai-600 035.
SENTHILKUMAR RAMAMOORTHY,J
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kj
Writ Petition No.594 of 2024 and W.M.P.Nos.577 & 578 of 2024
12.01.2024
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2 issues framed by the court
Whether Input Tax Credit can be denied by considering total trade payables when a breakup for the specific State is not legally required.
Whether the Assessing Authority applied its mind to the petitioner's evidence regarding State-specific trade payables.
2 provisions across 2 enactments
Ingram Micro India Pvt. Ltd.
State Tax Officer, Guindy Assessment Circle
Senthilkumar Ramamoorthy
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
