2025 (7) TMI 460 - HC - GST

Challenge to assessment order passed for the Assessment Year 2017-18 - petitioner has availed Input Tax Credit as ostensibly remained un-utilised under the provisions of TNVAT 2006 without following procedure under Section 140 of TNGST Act 2017 - HELD THAT - The impugned order passed by the respondent is quashed and the case is remitted back to the first respondent to pass fresh orders de nova on merits and in accordance within a period of six (6) months from the date of receipt of a copy of this order subject to the petitioner depositing 25% of the disputed amount as pre-deposit in cash. The impugned order which stands quashed shall be treated as corrigendum to the notice that preceded the impugned order - Petition disposed off.

Summary

The Madras High Court, through Justice C. Saravanan, disposed of the Writ Petition concerning the impugned Assessment Order dated 29.10.2024 for Assessment Year 2017-18 under TNVAT, 2006. The petitioner, a Sales Tax assessee, had un-utilised Input Tax Credit without filing the TRAN-1 application and failed to comply with Section 140 of the TNGST Act, 2017, also not responding to the Show Cause Notice.The Court noted its consistent precedent to "rescue" similarly situated persons by quashing such impugned orders subject to payment of 25% of the disputed tax as a pre-deposit. Accordingly, the impugned order was quashed and remitted for fresh adjudication de novo within six months, conditional on the petitioner depositing 25% of the disputed amount in cash.The impugned order is to be treated as a corrigendum to the preceding notice. The petitioner must file a reply to the Show Cause Notice within 30 days of receipt of the order copy, along with the pre-deposit. The first respondent must then pass fresh orders on merits, ensuring the petitioner is heard, preferably within three months.Failure to comply will result in automatic dismissal of the petition, allowing the first respondent to proceed as per law. The petition was disposed of with no costs, and connected miscellaneous petitions were closed.