HC Set Aside Order as Reply of Assessee to Notice in Form GST ASMT-10 Wasn’t Taken Into Account Before Confirming Demand

Case Details: Imperial Shipping Service v. Assistant Commissioner (ST) - [2024] 162 taxmann.com 218 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J.
• Ms C. Rekhakumari for the Petitioner. 
• T.N.C. Kaushik , AGP (T) for the Respondent.

Facts of the Case

The petitioner was engaged in the business of providing shipping services. The department issued a notice in Form ASMT-10 to the petitioner for non-reversal of ITC in respect of credit notes issued by supplier. The petitioner replied to the notice but the department passed an order confirming tax proposal on ground that it did not respond to notice. It filed writ petition against the demand order and contended that only the net value of ITC, after reducing the value of the credits notes, was reflected in the “All Other ITC” column.

High Court Held

The Honorable High Court noted that the impugned order was passed on ground that it did not respond to notice. The Court also noted that the reply was submitted but the petitioner’s reply to the notice in Form ASMT-10 was not taken into consideration in the impugned order. Therefore, it was held that the impugned order was liable to be set aside and matter was to be remanded for re-consideration.