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Cross charge invoices – Whether basis required?

  • JSW Steel (Odisha) was served with a notice for allegedly transferring excess unutilised Input Tax Credit from its mining business in Odisha to JSW Steel (Mumbai) and other units outside of the state of Odisha.

  • It was alleged that the excess input tax credit with JSW Steel (Odisha) has been sought to be utilized by raising tax invoices in favour of JSW Steel (Mumbai), registered as an ISD, claiming provision of support services without providing proper evidence.

  • Hon’ble Odisha High Court held a prima facie view that since no such supply being shown to have been made by JSW Steel (Odisha) to JSW Steel (Maharashtra), no prima facie case is made out by the Petitioner.

  • Hon’ble High Court of Odisha declined to grant interim stay on the order passed by the CT and GST Enforcement authority towards such tax, penalty and interest alongside declaring the cross charge to be incorrect.

M/s JSW Steel Ltd. vs,. UOI & Others (Odisha HC)

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