Demand should not be raised when negative taxable and invoice value arise due to erroneous reporting of Credit Notes

Last updated: 06 May 2024

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The Madras High Court has ruled that tax authorities should not raise demands when a negative taxable and invoice value arises due to the erroneous reporting of credit notes as Input Tax Credit (ITC). In this case, the petitioner incorrectly reported credit notes, leading to a negative value. The court found that the authorities failed to consider the petitioner's explanation and the lack of actual revenue loss to the government. Consequently, the assessment order was set aside and returned for reconsideration.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case of Oasys Cybernetics Private Limited v. State Tax Officer [W.P. No. 9624 of 2024 dated April 12, 2024] disposed of the writ petition by setting aside the assessment order in case where the total taxable and invoice value was in negative due to erroneous reporting of Credit Notes as Input Tax Credit ("ITC"), thereby holding that, the demand should not be raised when there is no loss caused to the government in the aforesaid scenario.

Citation :
W.P. No. 9624 of 2024 dated April 12, 2024

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_5674_oasys_cybernetics_private_limited.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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