HC Set Aside Assessment Order Determining Reversal of ITC which was not Put in SCN

Case Details: Hatsun Agro Product Ltd. v. Deputy Commissioner (ST) – II - [2023] 152 taxmann.com 453 (Madras)

Judiciary and Counsel Details

• • Dr Anita Sumanth, J.
  • S. Muthu Venkatraman for the Petitioner.
  • V. Prashanth Kiran for the Respondent.

Facts of the Case

In the present case, the Assessing Officer had passed an order against the petitioner by determining amount to be reversed on a comparison of ITC claimed under GSTR 3B and GSTR 2B. The petitioner filed writ petition and contended that prior to impugned order of assessment, only general notices were issued calling for particulars to which petitioner responded but no information or reasons regarding difference in ITC were sought.

High Court Held

The Honorable High Court noted that only general notices calling for particulars were served before passing the impugned order. However, the determination of ITC amount to be reversed ought to have been put to petitioner in show cause notice itself prior to passing of impugned order, so that petitioner had sufficient opportunity to respond to same and, or to provide details in support of claim of ITC.

Therefore, it was held that the impugned order of assessment was liable to be set aside and same would be treated as a show cause notice to petitioner, who would appear along with all details and fresh order should be passed.