In W.P. No. 26022 of 2023 -MADR HC- Madras High Court quashes GST assessment order in favour of Rainbow Motors
Justice C. Saravanan [05-09-2023]

Read Order: Rainbow Motors v. The Assistant Commissioner (ST)

Chahat Varma

New Delhi, September 26, 2023: In a recent judgment, the Madras High Court has ruled in favour of Rainbow Motors (petitioner), by quashing a GST assessment order and remitting the matter back to the Assistant Commissioner (ST) for a fresh consideration. The Court found that the order had been passed arbitrarily without due consideration of the petitioner’s reply.

Briefly stated, the petitioner, had challenged an assessment order dated 20.06.2023, which levied interest and penalty on the ground of excess credit claim of Input Tax Credit (ITC). The petitioner challenged the order on the ground that the Assistant Commissioner (ST) had not considered its reply, while passing the elaborate order.

The single-judge bench of Justice C. Saravanan agreed with the petitioner and found that the order was passed in an arbitrary manner. It noted that the Assistant Commissioner (ST) had simply reproduced the petitioner's reply without any discussion.

Accordingly, the bench remitted the matter back to the Assistant Commissioner (ST), to pass a fresh order on merits and in accordance with law.