GST Update

 Desk of CA. Praveen Sharma – 1018 Series (CAPS) 

HIMACHAL PRADESH HIGH COURT IN THE CASE OF Sanmati Metals

The Hon’ble High Court disposed of the writ petition by directing the GST authorities to reconsider the petitioner’s case afresh after examining all replies and supporting documents relating to the disputed ITC claim.

The petitioner contended that:

ITC was denied without properly considering the detailed replies and documents already submitted.

Tax had already been paid to the suppliers.

The petitioner possessed valid invoices and supporting records.

The purchaser cannot be compelled to ensure whether the supplier has deposited GST with the Government.

Proceedings were initiated without issuance of ASMT-10 and despite alleged jurisdictional issues.

The petitioner did not press the constitutional challenge relating to Section 16(2)(c) at this stage.

The Court observed that the petitioner’s objections and documents deserved proper consideration. Accordingly, the Court directed the competent authority to:

Accept fresh objections/replies along with supporting documents within 30 days;

Examine genuineness of transactions, payment of GST to suppliers, timing of supplier registration cancellation, and compliance by the petitioner;

Pass a speaking and reasoned order within 6 weeks thereafter in accordance with law.

The petition was accordingly disposed of with liberty to the authorities to proceed further in accordance with law if no reply is filed within the prescribed period.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS