HC Quashes Demand of Tax and Interest as Assessee Wrongly Claimed ITC as RCM in GSTR-3B Due to Error

Case Details: Tvl. Tirupathi Packaging v. Deputy State Tax Officer - [2024] 163 taxmann.com 690 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J.
• A. Chandrasekaran for the Petitioner.
• R. Suresh Kumar, Addl. Govt. Pleader for the Respondent.

Facts of the Case

The petitioner was a small enterprise and it had wrongly filed return in GSTR-3B by including the input tax credit as RCM claimed when indeed it was only a input tax credit and should have been availed under Table 4A(5).

The department issued notice and it demanded tax and interest without considering petitioner’s explanations. It filed writ petition and contended that it was unaware of the notices that preceded the impugned order.

High Court Held

The Honorable High Court noted that the dispute had arisen on account of wrong entry made by the petitioner in Form GSTR-3B for the initial month after the implementation of GST on 01.07.2017. However, the department issued order demanding tax and interest without considering petitioner’s explanations.

Therefore, the Court held that the petitioner shall file a reply to the show cause notice and the department was directed to pass a speaking order on merits and in accordance with law within a period of 3 months from the date of receipt of a copy of this order.