The Madras High Court declined or refused to exercise its discretionary jurisdiction in the matter of non-reporting of inward supply in the GST monthly and annual returns. The court left the case open for the petitioner-assessee to avail the statutory remedy.
The assessee, Tvl. Nagarajan Pavithra filed a writ petition challenging GST assessment order issued after reply to the show cause notice on failure to report correct tax liability while filing the annual returns in Form GSTR 9.
Mr.B.Satish Sundar, the assessee’s counsel submitted that the petitioner failed to report inward supply while filing the monthly returns and the annual return for financial year 2018-2019. He further submitted that GST Input Tax Credit (ITC) of Rs.5,40,185/- was available in the auto-populated GSTR 2A.
In those circumstances, he asserted that the GST proposal for Rs.2,71,465/- each towards CGST and SGST was confirmed without taking these aspects into account.
The assessee has tagged 7 respondents in the petition, which was represented by Mr.Ramesh Kutty, Senior Standing Counsel and Mr.C.Harsha Raj, Addl. Govt. Pleader (T). Both of the counsels submitted that assesee is no longer entitled to GST ITC since the petitioner failed to file returns within the time limit prescribed in sub-section (4) of Section 16 of GST Act.
In addition, they submitted that the petitioner’s reply was taken into consideration and that principles of natural justice were complied with.
The bench of Justice Senthilkumar Observed that “The petitioner has placed on record show cause notice dated 28.12.2023 and the reply dated 16.04.2024. By such reply, the petitioner asserts that both the GSTR 3B and 9 returns contained clerical errors. This reply was taken into consideration in the impugned order while confirming the tax proposal. In these circumstances, it cannot be said that principles of natural justice were violated. Consequently, I am not inclined to exercise discretionary jurisdiction.”
Thus, the petition was disposed of without any order as to costs by leaving it open to the petitioner to avail of the statutory remedy under GST legislation.
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