Order to Be Set Aside and Matter to Be Remanded as No Reasons Were Specified for Denying ITC | HC

Case Details: APL Apollo Tubes Ltd. v. State Tax Officer (Intelligence) - [2024] 161 taxmann.com 613 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • G. Natarajan for the Petitioner.
  • C. Harsha Raj, AGP (T.) for the Respondent.

Facts of the Case

The petitioner is engaged in the manufacture and supply of tubes and pipes of iron and steel. The department issued SCN and the petitioner replied to the same. Thereafter, the order was passed by the department. It filed writ petition to challenge the order and contended that the order was passed without recording proper reasons.

High Court Held

The Honorable High Court noted that the petitioner had placed on record sample invoices and also bifurcated amounts paid towards freight for the Hosur unit, which is the relevant unit and enclosed both a reconciliation statement and a statement from the Chartered Accountant in respect of such bifurcation. However, the department recorded that the petitioner had not filed any documents or evidence with regard to payment of GST on the collected freight charges.

The Court also noted that the department had not given proper reasons for rejecting the credit. Therefore, it was clear that the conclusion of department was not justified in light of the evidence placed on record by the petitioner. Thus, the Court held that the impugned order was liable to be set aside and the matter was remanded for re-consideration.