LOTUS PHARMACEUTICALS Vs. ASSISTANT STATE TAX OFFICER

JUDGEMENT

(1.) Petitioner - a partnership firm, challenges an order of determination under Sec. 73(9) of the Central Goods and Services Tax Act, 2017 and State Goods and Services Tax Act, 2017 (for short, 'the CGST/ SGST Act'). Petitioner also challenges an order dismissing an application for rectification.

(2.) For the financial year 2018-19, petitioner was alleged to have availed excess input tax credit. A show cause notice was issued on 28/12/2023, calling upon the petitioner to explain why the excess ITC, wrongly availed to the tune of Rs.3,51,00,063.00, should not be recovered under Sec. 73(1) of the CGST Act. A reply was filed, stating that, immediately upon noticing the wrong availing of ITC, petitioner had reversed it along with interest and an intimation as DRC-03 had also been filed on 30/1/2020. According to the petitioner, as soon as the error came to its knowledge, it had rectified it. However, by an order dtd. 20/4/2024, the proper officer rejected the objections and imposed a total liability of Rs.6,88,64,182.00 inclusive of tax, interest and penalty.

(3.) In the aforesaid order, it was observed that, DRC-03 alleged to have been filed by the petitioner, cannot be accepted, as, on verification, it was realized that the said intimation related to the period 2019-20, though the taxpayer had stated that it was a mistake for the period 2018-19. It was further observed that the claim could not be accepted as neither the proper officer nor the taxable person had given any information or report regarding such payment made by the taxable person to the corresponding period.