A perusal of the notice and recovery order would show that the issue raised by the petitioner needs consideration.
Section 16 of the CGST Act — Input Tax Credit --The petitioner challenged the notice wherein ITC was denied. The petitioner submitted that as per the Press Release of GST Council dated 04th May 2018, there shall not be any automatic reversal of ITC of buyer on nonpayment of tax by the seller. It is submitted that in case the seller has not paid the tax, a recovery has to be made from the seller. He relied on a proposition laid down by Madras High Court in M/s. D.Y. Beathel Enterprises Vs. State Tax Officer [W.P.(MD) No.2127 of 2021]. The respondent counsel prayed for certain time to file reply. The court observed that a perusal of the notice and recovery order dated 22.01.2021 would show that the issue raised by the petitioner needs consideration.
Held that:- The Hon’ble High Court directed that the petitioner depositing 5% amount of Rs.14,93,79,211/- demanded within a period of 15 days, no coercive steps shall be taken pursuant to the said order. List it in the week commencing 02nd August, 2021.
A perusal of the notice and recovery order would show that the issue raised by the petitioner needs consideration.
Section 16 of the CGST Act — Input Tax Credit --The petitioner challenged the notice wherein ITC was denied. The petitioner submitted that as per the Press Release of GST Council dated 04th May 2018, there shall not be any automatic reversal of ITC of buyer on nonpayment of tax by the seller. It is submitted that in case the seller has not paid the tax, a recovery has to be made from the seller. He relied on a proposition laid down by Madras High Court in M/s. D.Y. Beathel Enterprises Vs. State Tax Officer [W.P.(MD) No.2127 of 2021]. The respondent counsel prayed for certain time to file reply. The court observed that a perusal of the notice and recovery order dated 22.01.2021 would show that the issue raised by the petitioner needs consideration.
Held that:- The Hon’ble High Court directed that the petitioner depositing 5% amount of Rs.14,93,79,211/- demanded within a period of 15 days, no coercive steps shall be taken pursuant to the said order. List it in the week commencing 02nd August, 2021.