GST Update

 Desk of CA. Praveen Sharma – 995 Series (CAPS) 

KARNATAKA HIGH COURT IN THE CASE OF Felicity Adobe LLP

The petitioner challenged an Order-in-Original dated 24.02.2025, claiming violation of natural justice.

The main grievance was no opportunity of personal hearing during adjudication.

The petitioner had already filed a reply to the Show Cause Notice on 03.01.2025 (Annexure-E).

Along with the reply, a detailed reconciliation statement (Annexure-1) between GSTR-3B and GSTR-2A was submitted.

The department acknowledged the reply but failed to consider the reconciliation statement while passing the order.

The order wrongly observed that no reconciliation was submitted, leading to adverse findings.

The dispute mainly related to alleged ineligible ITC due to mismatch between returns.

The petitioner argued that Annexure-1 fully explained the discrepancies, and proper consideration would resolve the issue.

The Court held that adequate opportunity must be given, especially in factual matters like ITC reconciliation.

Accordingly, the Court set aside the order and remanded the matter back to the authority for fresh consideration, with a direction to provide proper hearing.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS