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2024 (2) TMI 182 - MADRAS HIGH COURTViolation of principles of natural justice - discrepancy between the amount specified in the show cause notice and the amount specified in the impugned order - transitional credit eligibility - Petitioner had obtained GST registrations in the names of its employees for the unlawful purpose of availing of ITC - Whether the petitioner has made out a case warranting interference in exercise of discretionary jurisdiction? Discrepancy between the amount specified in the show cause notice and the amount specified in the impugned order - HELD THAT:- On examining the respective show cause notice in entirety, it appears that CGST liability has been indicated in course of setting out the basis of such show cause notice. For the purpose of these proceedings, it is neither necessary nor desirable to record conclusive findings. It is sufficient to record that it appears that there is some basis to say that a typographical error resulted in the respective show cause notices indicating the CGST liability as zero. Transitional credit eligibility - HELD THAT:- In order to sustain a claim for transitional ITC, the assessee concerned should establish entitlement to such tax credit. If the assessing officer is of the view that further documents should be submitted for such purpose, it does not call for interference in exercise of discretionary jurisdiction. Petitioner had obtained GST registrations in the names of its employees for the unlawful purpose of availing of ITC - HELD THAT:- The principles of natural justice cannot be put into a straight jacket. Learned counsel for the petitioner places reliance on the order issued in Thilagarathinam Match Works [2013 (11) TMI 535 - MADRAS HIGH COURT]. The said order was in inquiry proceedings pursuant to a charge memo and cannot be compared to assessment proceedings. It should be borne in mind that the obligation of establishing eligibility for ITC is cast on the assessee concerned and, therefore, it is the responsibility of the assessee to place all the material documents to establish the actual purchase and receipt of goods or services. If the facts and circumstances of the case are considered cumulatively, none of the grounds of challenge constitute grounds for exercising discretionary jurisdiction. All these writ petitions are dismissed by leaving it open to the petitioner to impugn the orders impugned herein by way of statutory appeals.
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