In a recent judgement, the Madras High Court (HC) dismissed the writ petition related to the reversal of Input Tax credit in absence of final order since it amounts to a Premature petition.
Geethanjali, the petitioner has challenged the impugned notice dated 12.12.2022 issued by the respondent. Under the impugned notice on account of the alleged mismatch, the respondent has intimated to the petitioner the amount they are liable to pay towards CGST and SGST in respect of tax invoices.
The respondent viewed that the supplier has not paid the tax amounts to the respondent. No final orders have been passed by the respondent in respect of the amounts claimed by them in the impugned notice against the petitioner. Even before a final order has been passed, the petitioner has chosen to file this writ petition, which is premature.
A Single member bench comprising of Justice Abdul Quddhose held that the adjudicating authority will have to necessarily consider the reply submitted by the petitioner in respect of the impugned notice dated 12.12.2022 on merits and following law.
Further viewed that the impugned notice was only an intimation has been made by the respondent to the petitioner about the proposal to reverse the input tax credit availed by the petitioner and no final order has been passed.
The Court disposed of the writ petition by directing the adjudicating authority to give due consideration to the reply dated 06.01.2023 submitted by the petitioner and to take a final decision on merits and following the law.
Further held that “the respondent if they conclude that the reply is acceptable to them, they shall drop any further proceedings against the petitioner, but if they decide otherwise, the respondent shall follow the due procedure established under the law for taking further action against the petitioner.”
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