Mjbr Marketing And Financial Services PVT. LTD. vs. Union Of INDIA
Held
The Court, relying on a CBIC Circular and a previous Division Bench judgment, held that the electronic credit ledger should be treated as a unified pool of funds. Therefore, claiming CGST/SGST credit as IGST due to an inadvertent error, without actual revenue loss, does not warrant proceedings under Section 73 of the CGST Act. The impugned orders were set aside, and the matter was remanded for fresh consideration.
Facts
The petitioner, a GST registered taxpayer, inadvertently claimed CGST and SGST input tax credit under the IGST head, leading to a mismatch between GSTR 3B and GSTR 2A. The department issued an order imposing tax, penalty, and interest for the wrongly availed IGST, which was confirmed upon dismissal of a rectification petition. The petitioner challenged these orders.
Key Issues
Whether an inadvertent claim of CGST/SGST input tax credit under the IGST head, without actual revenue loss, constitutes 'wrong availment or utilization' under Section 73 of the CGST Act, considering the electronic credit ledger as a unified pool of funds.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
WP(C) NO. 26333 OF 2024 1 2025:KER:30804 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS TUESDAY, THE 1ST DAY OF APRIL 2025 / 11TH CHAITHRA, 1947 WP(C) NO. 26333 OF 2024 PETITIONER(S)/PETITIONER : MJBR MARKETING AND FINANCIAL SERVICES PVT. LTD., 2ND FLOOR, KURIANS TOWERS, BANERJI ROAD, OPP. SARITHA THEATRE, ERNAKULAM, KERALA, INDIA, REPRESENTED BY MANOJ JACOB, AGED 62 YEARS, DIRECTOR, PIN – 682 018. BY ADVS. JAZIL DEV FERDINANTO JOSE JACOB SREELEKSHMI BEN ANNE MARIA MATHEW RESPONDENT(S)/RESPONDENT : 1 UNION OF INDIA, REPRESENTED BY SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, NORTH BLOCK, NEW DELHI, PIN – 110 001. 2 DEPUTY COMMISSIONER, TAXPAYER SERVICES CIRCLE, NORTH, ERNAKULAM, ERNAKULAM, KERALA, PIN – 682 018. 3 DEPUTY COMMISSIONER, ADJUDICATION 1, ERNAKULAM, OFFICE OF THE JOINT COMMISSIONER OF STATE TAX, TAX PAYERS SERVICES, STATE GST DEPARTMENT, SGST COMPLEX, THEVARA, ERNAKULAM – 682 015. WP(C) NO. 26333 OF 2024 2 2025:KER:30804 4 THE MANAGING DIRECTOR, GOODS AND SERVICES TAX NETWORK WORLDMARK 1, AEROCITY, INDIRA GANDHI INTERNATIONAL AIRPORT, NEW DELHI, INDIA, PIN – 110 037. 5 STATE OF KERALA, REPRES
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