TVL. SHIVAM STEELS (REPRESENTED BY ITS PROPRIETOR MR. GYAN MANCHANDA)

VERSUS

ASSISTANT COMMISSIONER (ST) (FAC) , HOSUR

Citation: 2024 taxo.online 1291

 

The petitioner was served with show cause notice (SCN) dated 12.01.2024 with regard to 6 defects to which the petitioner replied on 22.01.2024 and 14.02.2024. The order was issued thereafter dated 12.03.2024. No.3 defect pertained to the reversal of ITC in respect of Credit Notes issued by supplier. Petitioner referred to Section 15(3) and Contended that the credit notes issued by the supplier were financial credit notes. He also refers to Circular No.92/11/2019-GST dated 07.03.2019 to substantiate same. He further submitted that the discount offered by the supplier was erroneously construed as a service provided by the purchaser to the supplier. HELD- The Court cited Section 15 (3) and the petitioner has prima facie established that neither of the requirements under sub-section (3) were satisfied. And concluded that the conclusion of the assessing officer that the taxable person is providing a service to the supplier while taking the benefit of a discount by facilitating an increase in the volume of sales of such supplier is ex facie erroneous and contrary to the fundamental tenets of GST law. Accordingly, defect no.3 was remanded for reconsideration and directed the respondent to issue a fresh order after providing opportunity to petitioner. Disposed of.

To read more about this Judgement, subscribe today: https://taxo.online/product/taxo-pro/

Already a subscriber, Click to LOGIN & refer to the TAXO GST CASE LAWS

     Or

Call us:- +91 99101 67919, 99996 93426