LI Network
Published on: November 25, 2023 at 07:35 IST
The Andhra Pradesh High Court has rejected a plea challenging the denial of a Goods and Services Tax (GST) input tax credit (ITC) claim due to the manual, not electronic, nature of the transfer.
Justices Ravi Nath Tilhari and A V Ravindra Babu presided over the case, emphasizing that the petitioner’s request to read down Rule 41 of the CGST Rules and accept manual filing cannot be entertained. The court noted that Rule 41 is not under challenge, and the petitioner had the opportunity to justify manual filing during the show cause notice.
The petitioner, a company engaged in providing internet services, received a show cause notice from the Deputy Assistant Commissioner, State Taxes, alleging a contravention of Section 16 of the APGST Act 2017.
The notice proposed a levy of Rs. 31,81,529 for an excess input tax credit claim and Rs. 38,46,389 for identified discrepancies. The petitioner was granted the opportunity to file objections and evidence.
In response, the petitioner contended that it manually filed Form GST-ITC 02 under Section 18(3) of the CGST Act, arguing that the respondent refused to consider such filing, leading to the denial of the ITC claim.
The court dismissed the petition, stating that a writ petition directly challenging the show cause notice without exhausting available remedies is not maintainable. However, the court allowed the petitioner to file objections within a week for reconsideration.
Case Title: Tikona Infinet Private Limited v. The State of Andhra Pradesh
