Case: Madras HC – Tvl. Hansraj and Company Vs. The Assistant Commissioner, (ST) [W.P. No. 4523 of 2024]
Facts
- Input Tax Credit (ITC) claimed by the taxpayer was disallowed on the ground that the details submitted in the taxpayer’s return did not tally with that in the GSTR-2A return
- Taxpayer received show cause notice dated 27.01.2023 alleging that he had made an excess claim of ITC and that this was evident on comparing his GSTR-3B with the GSTR-2A.
- By reply dated 01.08.2023, the taxpayer explained that the relevant invoice was issued by the supplier, M/s. Kirthi Enterprises, but that they had wrongly indicated the GSTIN of the sister concern of the taxpayer. By stating that the reply filed by him was disregarded and the proposal to impose tax, interest and penalty was confirmed, hence the taxpayer preferred the writ petition.
Held
- The documents on record, such as invoice dated 20.09.2017 and the GSTR return of Kirthi Enterprises, prima facie indicate that the GSTIN of Premier Corporation was wrongly mentioned by Kirthi Enterprises in the return.
- Held that the petitioner would be unjustly deprived of ITC, hence the impugned order dated 25.08.2023 is quashed and the matter is remanded to the assessing officer
- The bench also allowed for the taxpayer to file a petition to correct the GSTIN error, thus acknowledging the need for flexibility in rectifying genuine mistakes that could affect ITC claims.