The Madras High Court quashed the ITC ( Input tax credit ) mismatch demand on failure to consider certificate from the supplier.
An order dated 29.12.2023 is challenged in this writ petition. The petitioner received a show cause notice dated 29.09.2023. The said show cause notice was replied to on 16.10.2023 by stating that the reason for discrepancy between the GSTR 3B return of the petitioner and the auto-populated GSTR 2A was the belated filing of GSTR 1 by the supplier in respect of one invoice. The petitioner states that he was unable to upload the reply on the portal. The order impugned herein was issued in the said facts and circumstances.
The counsel for the petitioner referred to the above mentioned reply and also to the certificate obtained from the supplier and the Chartered Accountant of the supplier and that a rectification petition was filed by enclosing all these documents, but the same was rejected recently.
The Additional Government Pleader contended that the petitioner was provided a reasonable opportunity to contest the tax demand and failed to submit a reply through the GST portal.
The petitioner has placed on record a certificate dated 31.10.2023 from Fivestar Impex India Private Limited stating that the supply was made under invoice dated 01.11.2017. A certificate from Prabhakaran & Associates, Chartered Accountant is also on record. The said certificate provides the details of invoice dated 01.11.2017 for a total value of Rs.18,82,000/-. The e-mail dated 18.10.2023 is also on record. These documents were not taken into account while issuing the impugned order. For such reason, the order impugned herein calls for interference.
A Single Bench of Justice Senthilkumar Ramamoorthy observed that “Therefore, the order dated 29.12.2023 is set aside and the matter is remanded to the respondent for reconsideration. The petitioner is permitted to submit a reply to the show cause notice within 15 days from the date of receipt of a copy of this order by enclosing all relevant documents. Upon receipt thereof, the respondent is directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and thereafter issue a fresh order within two months from the date of receipt of the petitioner’s reply.”
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