M/s.CBC Fashions (Asia) Private Limited Vs The Assistant Commissioner [ST] [FAC] Bazaar Circle, Tirupur, Tirupur District.

Order date: 15 March 2023 

Key Pointers:                                                          

• The petitioner, M/s CBC Fashions (Asia) Private Ltd., filed this petition on the issue whether the ITC arising out of the mismatched returns filed by the petitioners compared to the returns/annexures filed by the third party shall be disallowed. 
• Further, whether there shall be a reversal of ITC as there has been no actual movement of goods qua the transactions in question. 
• The Court observed in respect to first issue that this Court in the case of M/s. JKM Graphics Solutions Private Limited v Commercial Tax Officer (99 VST 343)  had issued certain directions for conduct of verification and assessment in certain matters. The impugned assessments are to be re-done in light of Circular No.5 of 2021 dated 24.02.2021 the relevant part is set out as follows “The assessing authority who has raised the dispute of mismatch (herein after called as Original Assessing Authority) shall list out all such pending mismatch cases in respect of his/her assessment circle… The Original Assessing Authority shall undertake verification mismatch transaction report in the department intranet website (tnvat.gov.in) with reference to the data available at both the ends i.e., buyer and seller.”
• In respect to second issue, it was held that assessing authority to await decision in W.A.No.2607 of 2021 and complete the assessments thereafter in light of the judgment of the Hon'ble Supreme Court in Ecom Gill Coffee Trading Private Limited.
• The impugned assessments are set aside and these writ petitions are disposed in the aforesaid terms.