Assessment Order passed under Tamil Nadu GST Act based on  General Notice Issued is not Valid: Madras HC sets aside Order [Read Order]

The Madras High Court has held that the assessment order passed under the Tamil Nadu Goods and Service Tax Act,2017 based on the general notice issued is not valid.

M/s.Hatsun Agro Product Ltd, 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 (TNGC Act). The issue related to the reversal of Input Tax Credit (ITC), which, in the opinion of the Assessing Officer is ineligible and ought not to have been claimed.

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

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

The Court, ought to have been put to the petitioner in the show cause notice itself before 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.

Before 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.

“In the interests of substantial justice, the 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 13th July 2023, at the specific request of the counsel for the petitioner, without expecting any further notice in this regard.”, the Court comprising Dr Justice Anita Sumanth held.

To Read the full text of the Order CLICK HERE

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