Petitioner | Babu Ramadevi |
Respondent | Union of India, Central Board of Indirect Taxes and Customs, Commissioner of Commercial Taxes, Joint Commissioner (Appeals-II) & Deputy Commissioner of GST & Central Excise |
Decision by | Madras High Court |
Date of order or Judgement | 22-March-2022 |
Citation no. | W.P. No.6298 of 2022 2022 (3) GSTPanacea 65 HC Madras |
Hon’ble Judge | Justice M.Dhandapani |
Decision | In Favour of Assessee |
ITC Claim Time Barred as per Section 16 Sub-Section (4)-HC Directs petitioner to deposit 20% of the amount demanded & directed to file an appeal before the Appellate Tribunal.
ITC Claim Time Barred -Facts of the Case
ITC Claim Time Barred-The petitioner had belatedly filed Returns for the period from January 2019 to March 2019 and paid the tax due.
Further, the petitioner had duly availed the Input Tax Credit (ITC) for the said period, after satisfaction of the condition provided under Section 16(2) of the TNGST Act.
The respondent herein issued a show cause notice proposing to reverse the ITC.
Petitioner availed the opportunity of personal hearing and apprised her submissions, however, the respondent passed the assessment order on the ground that ITC claim is time barred as per Section 16(4) of the TNGST Act.
Moreover, the respondent passed an order and made a demand against the petitioner to the tune of Rs.10,92,448/- with interest thereon and penalty of Rs.1,09,245/-, against which the petitioner preferred an appeal.
The respondent by order confirmed the order in original passed by the Original Authority, against which, the petitioner preferred further appeal before the Appellate Tribunal in terms of Section 112(1) of the Central Goods and Services Tax (CGST) Act, 2017, read with Rule 110 of the CGST Rules, 2017.
However, till date, the Appellate Tribunal was not constituted and no members were appointed. Therefore, the petitioner was unable to pursue the appeal before the Tribunal.
Hence, the petitioner has filed the present Writ Petition.
Argument Before Court
ITC Claim Time Barred-The petitioner submitted that, as a mandatory requirement, the petitioner has to deposit 20% of the tax demanded while preferring an appeal before the Appellate Tribunal. However, since the Appellate Tribunal was not constituted and no members were appointed.
Further, he submitted that the petitioner is now ready to pay 20% of the amount before the respondent within a period of four weeks.
The petitioner may be granted liberty to file an appeal before the Appellate Tribunal and thereafter the Appellate Tribunal will pass appropriate orders as expeditiously as possible.
Madras High Court Held
ITC Claim Time Barred-HC directs the petitioner to deposit 20% of the amount demanded by the respondent, within a period of four weeks. On receipt of such amount, the respondents are directed not to take any coercive steps.
However, in default, liberty is granted to the respondents to proceed with the matter in accordance with law.
The petitioner is directed to file an appeal before the Appellate Tribunal, and if such appeal is filed, the Appellate Tribunal may pass order as expeditiously as possible.
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Babu Ramadevi
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