GST
TRT-2025-
Madras High Court
Date:-02-02-24
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 02 February 2024
Parties: M/s. Metal Trade Incorporation Vs Assistant Commissioner (ST)(FAC)
Facts –
- The Petitioner, M/s. Metal Trade Incorporation, was served with an intimation in Form GST DRC-01A and show cause notice on the basis of inspection conducted by the Intelligence Wing, alleging that the petitioner had availed Input Tax Credit (ITC) without actually purchasing goods.
- The petitioner submitted that intimation and show cause notice were vague in as much as no details of the supplies or suppliers of the petitioner were set out therein.
Issue –
- Whether the impugned orders call for interference on any other grounds?
Order –
- The Single Bench of Hon’ble High Court observed that the show cause notice clearly states that the petitioner was being provided an opportunity of personal hearing. Likewise, the reminder notice dated 02.09.2023 also indicates that a personal hearing was being provided to the petitioner on 05.09.2023. Nothing has prevented the petitioner from attending the personal hearing and thereafter submitting a reply to the show cause notice. Admittedly, this was not done. Therefore, it was concluded that principles of natural justice were not violated.
- Ordinarily, the petitioner would be required to produce invoices, e-way bills, payment receipts, lorry receipts, delivery challans and the like to establish purchase and receipt of goods. Since the impugned order was issued primarily on the basis that such documents were not submitted by the petitioner, it is not appropriate to adjudicate this issue in exercise of discretionary jurisdiction when the petitioner has an alternative remedy.
- For all the reasons set out above, the orders impugned herein do not call for interference under Article 226 of the Constitution of India. Accordingly, the writ petitions are disposed of.
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