The Madras High Court recently quashed an GST ( Goods and Services Tax ) assessment order, considering the petition claiming that the same supplies of Damro furniture were subjected to the assessment more than once. The court directed the department to examine the duplication.
The writ petition was filed by the petitioner Damro Furniture Private Limited on the premise that the supplies in question were subjected to two separate assessments.
Complete Draft Replies of GST ITC Related Notices, Click Here
The petitioner submitted that the first assessment proceeding, initiated with a notice dated May 30, 2023, concluded on August 21, 2024, with the rejection of a proposal to reverse Input Tax Credit ( ITC ).
However, a second assessment proceeding, initiated on August 29, 2023, resulted in an order confirming the reversal of ITC amounting to ₹13,28,002, even though the initial proposal was for ₹54,06,825.
It was contended that the ₹13,28,002 ITC rejected in the second proceeding pertained to the same supplies addressed in the earlier proceeding, where the reversal was dropped entirely.
Complete Draft Replies of GST ITC Related Notices, Click Here
The respondent’s counsel recognised the possibility of overlap but accentuated the need to verify whether the supplies assessed in both proceedings were indeed identical.
Considering the submissions, Justice Mohammed Shaffiq set aside the impugned order, according liberty to the respondent authority to issue a fresh notice to examine whether the supplies in question were the same in both assessments. The court directed that further proceedings, if necessary, be conducted strictly in accordance with the law. Accordingly, the petition was disposed of.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
