M/s SAMEERA HOTELS (CHENNAI) PRIVATE LIMITED v. THE STATE TAX OFFICER (INSPECTION-I) & ORS

Introduction

The petitioner, M/s Sameera Hotels (Chennai) Private Limited, challenged five assessment orders passed under Section 74 of the CGST/TNGST Acts for the Assessment Years 2018-19 to 2022-23. The dispute arose from an inspection conducted by the GST authorities, during which discrepancies relating to excess Input Tax Credit (ITC) and non-payment of GST under the Reverse Charge Mechanism (RCM) on commissions paid to foreign booking agencies were noticed.

Following the inspection, the department issued Form GST DRC-01A intimations and thereafter Show Cause Notices in Form GST DRC-01 invoking Section 74. The petitioner submitted detailed replies on merits, but the adjudicating authority confirmed the demands under Section 74 by holding that the petitioner had wilfully availed excess ITC and failed to discharge tax under RCM.