GST ITC claimed by petitioner can be rejected by way of reasoned speaking order: HC

Case Details: Sree Rajendra Steels v. Assistant Commissioner (CT) - [2022] 138 taxmann.com 288 (Madras)

Judiciary and Counsel Details

• • Dr Anita Sumanth, J.
  • K. Senguttuvan for the Petitioner.
  • T.N.C. Kaushik, Govt. Adv. for the Respondent.

Facts of the Case

The petitioner was registered as a dealer and the Adjudicating Authority in a very cursory order disallowed the ITC on ground of receipt only of invoices without receipt of goods. It filed writ petition challenging the order on the ground that claim of ITC was denied without considering written representation of petitioner.

High Court Held

The Honorable High Court observed that in its initial representation before the department, the petitioner had enclosed several documents in support of its claim of ITC but the claim was rejected by way of a cursory order. The rejection of petitioner’s claim ought to have been done by way of reasoned speaking order and case would have to be decided based on documents that were supplied by petitioner as well as material collated/available. Therefore, the matter was remitted back to adjudicating authority for re-adjudication and the adjudicating authority was directed to pass a speaking order thereafter.

List of Cases Referred to

• • Sree Rajendra Steel v. Dy. CIT [WP No. 280 of 2021, dated 8-1-2021] (para 2).