HC Quashed Order and Remanded Matter as No Reasons Were Recorded for Rejecting Contentions of Assessee

Case Details: Resulticks Digitals India (P.) Ltd. v. Additional Commissioner - [2024] 162 taxmann.com 442 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • Raghavan Ramabadran for the Petitioner.
  • Ramesh Kutty, Sr. Standing Counsel for the Respondent.

Facts of the Case

The petitioner was engaged in providing services to its clients located in foreign countries. The department issued show cause notice to the petitioner and it was alleged that the petitioner had not received amount in foreign currency into India. The petitioner submitted that the export invoices were raised in US dollars and the amount was remitted by the recipient of services in US dollars from the Indian Overseas Bank, Singapore and thereafter converted into INR.

However, the department passed the order and it was alleged that the petitioner had not discharged GST on the services provided to its clients. It filed writ petition against the demand order.

High Court Held

The Honorable High Court noted that the documents placed on record by the petitioner, such as the export invoices and the credit advice appear to indicate prima facie that the invoice was raised in US dollars; payment was also remitted into India in foreign currency; and thereafter converted into INR. However, the department failed to record any reasons for rejecting contentions of petitioner and the order was incomplete. Thus, the Court held that the order was to be set aside and the matter was remanded for reconsideration after providing a reasonable opportunity to the petitioner.