Ankit Kumar Agarwal vs. The Assistant Commissioner of State Tax
Cretum Advisory
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Brief Facts:
Ankit Kumar Agarwal, the owner of Ambika Trading Company, contested an adjudication order dated December 15, 2023. Initially, his writ petition was dismissed, and he was directed to pursue statutory appellate remedies. The dispute centred on the filing of the annual return GSTR-9 for the fiscal year 2017-18 and its potential dismissal. Agarwal corrected errors related to Input and Output Cess in the GSTR-3B returns through the GSTR-9 filed within the extended deadline due to COVID-19.
Issue:
The question arose whether the GSTR-9 annual return for the financial year 2017-18 could be completely disregarded by the adjudicating authority and demand could be passed thereon without considering the GSTR-9 filed by the Appellant?
Ruling of the Court:
The High Court ruled that the GSTR-9 annual return, submitted within the COVID-19 extension period, should not be disregarded as it could adversely affect the assessee’s rights. The court recognized the appellant’s argument of the matter being revenue neutral and remanded the case back to the Assistant Commissioner of State Tax for a re-evaluation of the submissions, including the GSTR-9 return, and to make a decision based on merits and legal compliance after giving the assessee a personal hearing.
Cretum Advisory Comments:
The court’s decision to send the case back for re-evaluation is judicious and equitable. It respects the exceptional extensions granted during the pandemic and ensures the protection of taxpayers’ rights by considering all pertinent filings. The acknowledgment of the issue’s revenue-neutral nature also reflects a fair treatment of small taxpayers, highlighting the significance of intent and actual fiscal consequences rather than procedural errors.
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