GST Update

 Desk of CA. Praveen Sharma – 1007 Series (CAPS) 

The High Court examined a case where the taxpayer challenged a tax demand raised through a separate proceeding for a different financial year. The main argument was that two proceedings were initiated on the same issue and should not be allowed simultaneously.

The Court observed that both proceedings related to different financial years and different types of issues. One was based on incorrect tax reporting, while the other involved allegations of wrongful input tax credit using invoices from a non-existent firm.

Since the period, nature of allegation, and tax liability were different, the Court held that both proceedings were independent and valid.

The Court also found that the taxpayer’s reply had been considered and there was no violation of natural justice.

Accordingly, the petition was dismissed, with liberty to file an appeal as per law.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS