Order Date – 08 July 2025

Parties:  M/s JIT Auto Comp v. Assistant Commissioner, Hosur Division II

 Facts –

• The Petitioner, M/s JIT Auto Comp, faced proceedings under Section 74 of the CGST Act due to differences in their GSTR-2A and GSTR-3B returns. They later submitted a CA certificate confirming receipt of goods and GST payments. 
• Despite this, the department and passed an adverse assessment order.

Issue –

• Whether invoking Section 74 was justified in a case where the petitioner had cooperated and there was no fraudulent intent?

Order –

• The Single Bench of Hon’ble High Court observed that when Chartered Accountant certificate is produced by the petitioner, the respondent is supposed to have applied his mind and arrived at a wise conclusion after verifying all the transaction along with the relevant documents. 
• However, to the shock of this Court, no such decision was arrived at by the respondent. Further, no findings were rendered with regard to the aforesaid Chartered Accountant certificate produced by the petitioner. Therefore, it is clear that the respondent had arrived at a conclusion in a mechanical manner and passed the impugned order under Section 74 of the GST Act.
• Accordingly, the impugned order passed by the respondent is set aside and the matter is remanded to the respondent for fresh consideration.