M/S.Asir Automobiles Private Limited vs. The Assistant Commissioner (St)

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WP(MD)/3785/2024HC MadrasGSTCNR HCMD01017822202424 July 2024Bench: HONOURABLE MR JUSTICE C. SARAVANAN7 pages
AI SummaryRemanded

Facts

The petitioner challenged assessment orders and consequential rectification rejection orders for multiple assessment years. The petitioner argued that credit notes were not considered and ineligible input tax credit was wrongly demanded.

Held

The Court noted that subsequent orders had dropped most of the issues raised. Therefore, the impugned orders were set aside and the cases were remitted back to the respondent for fresh consideration.

Key Issues

Whether the assessment orders and rectification rejection orders were passed without considering the petitioner's submissions and subsequent developments. Whether the respondent properly considered credit notes and ineligible input tax credit.

Sections Cited

Section 161

AI-generated summary — verify with the full judgment below

Heard together (5 matters)

W.P.(MD)No.3785 of 2024
W.P.(MD)No.3786 of 2024
W.P.(MD)No.3787 of 2024
W.P.(MD)No.3788 of 2024
W.P.(MD)No.3789 of 2024

Read from the judgment's own cause title. This page is filed under one of them.

Cause title — parties, addresses and appearances
W.P.(MD) Nos.3785 to 3789 of 2024 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 24.07.2024 CORAM THE HON'BLE MR.JUSTICE C.SARAVANAN W.P.(MD)Nos.3785 to 3789 of 2024 and W.M.P.(MD)Nos.3681, 3680, 3692, 3684 and 3685 of 2024 M/s.Asir Automobiles Private Limited, Rep. by its Director R.Praveenkumar, Having Registered Office at 1/515, Ettayapuram Road, Mappalaiyurani, Thoothukudi – 628 002. ... Petitioner in all the W.Ps. Vs. The Assistant Commissioner (ST), Tuticorin - I Assessment Circle, Commercial Taxes Buildings, Tuticorin. ... Respondent in all the W.Ps. Prayer in W.P.(MD)No.3785 of 2024:- Writ Petition filed under Article 226 of Constitution of India for issuance of a Writ of Certiorarified Mandamus, to call for the records on the files of the respondent in GSTIN : 33AALCA2971JIZJ / 2017-18 dated 16.8.2023 and consequential proceedings in GSTIN 33AALCA2971JIZJ dated 07.11.2023 for the Assessment Year 2017-18, to quash both as nonspeaking, illegal, arbitrary, undue enrichment, without jurisdiction and further direct the respondent to pass an order afresh after considering the replies and records dated 25.02.2023, 11.05.2023 and 04.07.2023 including opportunity of personal hearing. _____________ Page No. 1 of 7 https://www.mhc.tn.gov.in/judis W.P.(MD) Nos.3785 to 3789 of 2024 Prayer in W.P.(MD)No.3786 of 2024:- Writ Petition filed under Article 226 of Constitution of India for issuance of a Writ of Certiorarified Mandamus, to call for the records on the files of the respondent in GSTIN : 33AALCA2971JIZJ / 2018-19 dated 16.8.2023 and consequential proceedings in GSTIN 33AALCA2971JIZJ dated 07.11.2023 for the Assessment Year 2018-19, to quash both as nonspeaking, illegal, arbitrary, undue enrichment, without jurisdiction and further direct the respondent to pass an order afresh after considering the replies and records dated 25.02.2023, 11.05.2023 and 04.07.2023 including opportunity of personal hearing. Prayer in W.P.(MD)No.3787 of 2024:- Writ Petition filed under Article 226 of Constitution of India for issuance of a Writ of Certiorarified Mandamus, to call for the records on the files of the respondent in GSTIN : 33AALCA2971JIZJ / 2019-20 dated 16.8.2023 and consequential proceedings in GSTIN 33AALCA2971JIZJ dated 07.11.2023 for the Assessment Year 2019-20, to quash both as nonspeaking, illegal, arbitrary, undue enrichment, without jurisdiction and further direct the respondent to pass an order afresh after considering the replies and records dated 25.02.2023, 11.05.2023 and 04.07.2023 including opportunity of personal hearing. Prayer in W.P.(MD)No.3788 of 2024:- Writ Petition filed under Article 226 of Constitution of India for issuance of a Writ of Certiorarified Mandamus, to call for the records on the files of the respondent in GSTIN : 33AALCA2971JIZJ / 2020-21 dated 16.8.2023 and consequential _____________ Page No. 2 of 7 https://www.mhc.tn.gov.in/judis W.P.(MD) Nos.3785 to 3789 of 2024 proceedings in GSTIN 33AALCA2971JIZJ dated 07.11.2023 for the Assessment Year 2020-21, to quash both as nonspeaking, illegal, arbitrary, undue enrichment, without jurisdiction and further direct the respondent to pass an order afresh after considering the replies and records dated 25.02.2023, 11.05.2023 and 04.07.2023 including opportunity of personal hearing. Prayer in W.P.(MD)No.3789 of 2024:- Writ Petition filed under Article 226 of Constitution of India for issuance of a Writ of Certiorarified Mandamus, to call for the records on the files of the respondent in GSTIN : 33AALCA2971JIZJ / 2021-22 dated 16.8.2023 and consequential proceedings in GSTIN 33AALCA2971JIZJ dated 07.11.2023 for the Assessment Year 2021-22, to quash both as nonspeaking, illegal, arbitrary, undue enrichment, without jurisdiction and further direct the respondent to pass an order afresh after considering the replies and records dated 25.02.2023, 11.05.2023 and 04.07.2023 including opportunity of personal hearing. For Petitioner in all the W.Ps. : Mr.S.Karunakar For Respondent in all the W.Ps. : Mr.R.Suresh Kumar Additional Government Pleader

COMMON ORDER By this common order, all these Writ Petitions are being disposed of. _____________ Page No. 3 of 7 https://www.mhc.tn.gov.in/judis

W.P.(MD) Nos.3785 to 3789 of 2024

2.

In these Writ Petitions, the petitioner has challenged the respective Assessment Orders dated 16.08.2023 and the consequential order passed under Section 161 of the TNGST Act, 2017, on 07.11.2023 rejecting the request of the petitioner for rectification of the purported mistakes committed in the respective Assessment Orders dated 16.08.2023. 3. It is the case of the petitioner that the petitioner had reversed the credit availed on the notices that were returned for which the Supplier had issued a Credit Note. However, without considering the same, the respondent had confirmed the demand vide impugned orders for the respective Assessment Years.

4.

That apart, it is submitted that the petitioner had never availed input tax credit on ineligible inputs as blocked credits. However, the respondent has ignored the same despite the fact that the petitioner had uploaded the information giving the particulars. It is submitted that post- facto, during the pendency of the present Writ Petitions, the Assistant Commissioner [ST] [IU], has passed fresh orders all dated 31.03.2024 dropping most of the issues. _____________ Page No. 4 of 7 https://www.mhc.tn.gov.in/judis

W.P.(MD) Nos.3785 to 3789 of 2024

5.

In view of the above, the learned counsel for the petitioner submits that the impugned orders in these Writ Petitions may be set aside and the cases be remitted back to the respondent to pass a fresh order in terms of the following orders for the respective Assessment Years. Sl.No. Assessment Year Date 1. 2017-2018 31.03.2024 2. 2018-2019 04.04.2024 3. 2019-2020 05.04.2024 4. 2020-2021 06.04.2024 5. 2021-2022 08.04.2024

6.

The submissions of the petitioner appears to be reasonable as there are two orders, one confirming the demand and one dropping the demand by two different authorities. Under these circumstances, the impugned orders are set aside and the cases are remitted back to the respondent to pass a fresh order in the light of the above mentioned orders passed by the Assistant Commissioner [ST] [IU]. This exercise may be carried out by the respondent as expeditiously as possible, preferably within a period of three months from the date of receipt of a copy of this order. Needless to state the petitioner shall also be heard before passing final orders in the remand proceedings. _____________ Page No. 5 of 7 https://www.mhc.tn.gov.in/judis

W.P.(MD) Nos.3785 to 3789 of 2024

7.

These Writ Petitions stand allowed with the above direction. No costs. Consequently, connected Miscellaneous Petitions are closed. Index : Yes/ No 24.07.2024 Neutral Citation: Yes / No Speaking Order / Non-Speaking Order smn2 To The Assistant Commissioner (ST), Tuticorin - I Assessment Circle, Commercial Taxes Buildings, Tuticorin. _____________ Page No. 6 of 7 https://www.mhc.tn.gov.in/judis

W.P.(MD) Nos.3785 to 3789 of 2024 C.SARAVANAN

, J.

smn2 Common order in W.P.(MD) Nos.3785 to 3789 of 2024 24.07.2024 _____________ Page No. 7 of 7 https://www.mhc.tn.gov.in/judis

Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.