Claim of GTA credit can’t be denied without considering the evidence produced by assessee: Madras HC

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Claim of GTA credit can’t be denied without considering the evidence produced by assessee: Madras HC

 

 

 

India Cements Ltd. v. Commissioner of CGST & Central Excise – [2021] 127 taxmann.com 563 (Madras)
The petitioner was engaged in manufacture of cements. The show cause notice was issued in respect of ISD credit and GTA credit. The adjudicating authority had dropped proceedings in respect of ISD credit. However, the remaining credits were treated as GTA credits and the authority held against the petitioner. The same was challenged in the petition.
The petitioner pointed that the adjudicating authority called for verification report from the jurisdictional Range Officer, vide e-mail dated 21-12-2020. After receiving the same, the jurisdictional range officer sent a communication dated 29-12-2020 calling upon the petitioner to furnish the details sought for. The petitioner submitted all the relevant details to the jurisdictional Range officer. But even before receiving the petitioner’s reply, the range officer informed the adjudicating authority vide e-mail dated 30-12-2020 that the noticee had not produced the called for documents for verification and that therefore, the claim of the noticee could not be verified. Therefore, the adjudicating authority chose to pass the order.
The Honorable High Court observed that there has been absolutely no delay on the part of the petitioner in responding to the communication. Since, all the sought for documents were made available and the details were also furnished but even before that, the range officer informed the adjudicating officer that there was no response received. Therefore, petition would be allowed and order was liable to be quashed and the matter to be remitted back for passing order afresh in accordance with law in the light of the observations made earlier.
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