The Gauhati High Court stayed the operation of a show cause notice ( SCN ) seeking reversal of input tax credit ( ITC ) as there was default committed by the supplier.
The petitioner in this writ petition has challenged a Show Cause Notice dated 11.01.2024 issued under Section 73[1] read with Section 50 of the Assam GST Act, 2017, whereby the petitioner was called up to show cause within 30 [ thirty ] days from the date of receipt of Show Cause Notice as to why an amount of Rs. 27,25,503/- [ SGST Rs. 11,26,329.00, CGST Rs. 11,26,329.00 and IGST Rs. 4,72,845.00 ] should not be recovered from the petitioner being the Input Tax Credit [ ITC ] excess claimed for the period: 2018-2019 plus interest and penalty.
The petitioner has assailed the Show Cause Notice on the ground that the petitioner had availed ITC on valid tax invoices raised by the supplier and had also made payment of taxes to the supplier.
The Standing Counsel for the Finance and Taxation Department has submitted that the Show Cause Notice has been issued after considering the Instructions contained in Circular no. 183/15/2022 dated 27.12.2022, more particularly, Clause 4.1.1 thereof.
A Single Bench of Justice Manish Choudhury observed that “The matter would require further examination. As sought by the counsel for the parties, list the case on 22.02.2024. Having regard to the submissions of the learned counsel for the petitioner, it is observed that the respondents shall not act upon the impugned Show Cause Notice dated 11.01.2024 till the next date of listing.”
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