The Madras High Court has stayed the ruling by the Authority of Advance Ruling (AAR) which denied the Input Tax Credit (ITC) for IGST Paid via TR-6 challan in related party import transactions.
The bench of Justice G.R. Swamynathan has observed that during the assessment (Customs) SVB has instructed to pay the additional customs duty and pay the IGST on import of service The same has been remitted thru TR6 challan to customs. Subsequently AAR has come from Madras stating that payment to customs via TR6 challan is not prominent documents to avail ITC under IGST with the GST department.
The Petitioner, Data Pattern India Ltd. was a dealer with GST registration has imported the goods and availed services (related parties transaction).
The petitioner stated that he had already paid IGST on import through TR 6 Challan, also called as a Treasury Receipt. The grievance of the petitioner is that this document has not been recognized by the respondents and that has led to the passing of the order.
“Since recovery proceedings are in the offing, I grant an order interim stay till the filing of the counter and for a further period of two weeks after filing of the counter by the respondents. It is for the petitioner to obtain extension of the interim order thereafter,” the court said.
Case Details
Case Title: Data Patterns India Versus Joint Commissioner of Central Tax
Case No.: WP No. 18161/2025
Date: 16/05/2025
Counsel For Petitioner: Nithyesh Natraj
Counsel For Respondent: S.M. Deenadayalan
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