The Kerala High Court remanded matter to Assessing Officer as there was rejection of input tax credit (ITC) on failure of supplier to file GSTR-1 on time.
The present writ petition has been filed impugning the assessment order. The petitioner, an assessee under the provisions of the GST / CGST Act, 2017 had filed GSTR -1 and GSTR – 3B returns for the period July 2017 to March 2018 till the financial year 2017-2018 and had claimed input tax credit for the tax period on purchase of goods, effected from registered dealers, in accordance with law, through the GSTIN online portal. The petitioner was issued notices from the GSTIN portal.
The petitioner could not file a reply to the notices issued. In the absence of reply to the show cause notices issued and personal hearing, the 1st respondent passed assessment order in Ext.P2, allowing certain amount of input tax credit as claimed in return by the petitioner for the assessment year 2017-2018.
The only reason for denying the input tax credit in order is that though the petitioner had filed GSTR 1 and GSTR 3B within the enlarged time, since certain suppliers had not filed GSTR- 1 before the due date ie 30.04.2019, the entire ITC claim had been rejected under Section 16(4) of the CGST Act.
The counsel for the petitioner submitted that petitioner did not have the opportunity of representing this case before the 1st respondent in absence of the notices and initial difficulties in understanding in implementation of the GST, an all together new tax regime. Many like the petitioner did not get access to the GST portal, as a result, the petitioner could not file reply and without hearing him the impugned order has been passed, whereby certain claim for input tax credit has been denied.
A Single Bench of Justice Dinesh Kumar Singh observed that “Considering the aforesaid fact, the matter is remitting back to the file of the assessing authority, 1st respondent to consider the issue afresh in the light of judgment in Diya Agencies and pass a fresh order after hearing the petitioner. The petitioner is directed to appear before the Assessing officer on 05.01.2024, with all evidence and report denying the input tax credit, which is evident in order”.
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