HC Directed Assessee to Avail Appellate Remedy Against ITC Disallowed by Dept. Due to Allegation of Circular Trading
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- Last Updated on 28 December, 2023
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Case Details: M&Arun Tex v. State Tax Officer - [2023] 157 taxmann.com 566 (Madras)
Judiciary and Counsel Details
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- Krishnan Ramasamy, J.
- G. Natarajan for the Petitioner.
- T.N.C. Kaushik & A.G. Satyanarayana for the Respondent.
Facts of the Case
The petitioner was engaged in buying and selling of yarn. The department conducted search at its premises and issued notice to disallow ITC on ground of circular trading without movement of goods. Thereafter, the department passed an order disallowing ITC and levied interest & penalty. It filed writ petition against the order.
High Court Held
The Honorable High Court noted that the petitioner had filed reply to the notice but the department passed order disallowing ITC on ground that petitioner had indulged in creation of bogus invoices and it had not conducted any business activities. It was not the case of petitioner that no opportunity was afforded during adjudication of the proceedings.
Therefore, the Court dismissed the petition by holding that detailed order had been passed after giving sufficient opportunity and the appeal remedy was available to petitioner.
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