ITC Mismatch with Details on Portal Uploaded by Seller: Madras HC Remands Matter after Additional 10% Tax Payment [Read Order]

The Madras High Court remanded the matter noting that the details uploaded by the seller had a mismatch of the Input Tax Credit (ITC). An additional 10% of the disputed tax amount was required by the appellant to be submitted before the matter is taken up on remand.

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A mismatch between the input credit availed by the petitioner and the details uploaded in the portal was found, according to which an assessment order was passed.

The petitioner contends that the transaction is genuine and the seller failed and omitted to upload the relevant invoice. For a default on the part of the seller, the liability should not be attributed to the petitioner.

Moreover, it was argued by the counsel, B. Rooban, that there was a problem faced by the petitioner in operating the portal properly and if an opportunity would be given, then he would cooperate with the respondent authority.

The High Court observed that the nature of the transaction seemed genuine and that the petitioner did not properly participate in the inquiry. Additionally, the fact that the transaction occurred during the first year of the TNGST regime was also noted to be relevant in the present case.

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The Madras High Court accordingly directed the petitioner to deposit 10% of the tax liability, upon which, an opportunity can be granted to him. The bench of Justice D. Bharatha Chakravarthy ordered for the matter to be remanded to the State of Tax Officer, the second respondent, without costs. It was also directed that the proceedings would be completed afresh.

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