M/S Sakthi Timber And Plywoods vs. Assistant Commissioner
Held
The High Court set aside the assessment order and recovery notice, allowing the writ petition. It held that denial of ITC merely on GSTR-2A/3B mismatch is incorrect if the assessee can prove tax payment to the supplier. The petitioner was granted an opportunity to appear before the Assessing Authority with documents to prove the bona fide nature of their ITC claim, after which a revised order should be issued.
Facts
The petitioner challenged an assessment order and recovery notice denying input tax credit (ITC) due to a mismatch between GSTR 2A and GSTR 3B. The petitioner contended that ITC was claimed based on valid invoices and that suppliers had either uploaded '0' tax due to technical issues or remitted the tax with some delay, which is now reflected in GSTR 2A.
Key Issues
The key issue was whether input tax credit can be denied solely due to a mismatch between GSTR 2A and GSTR 3B, and if the assessee should be given an opportunity to substantiate their claim with evidence of tax payment by the supplier.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH TUESDAY, THE 3RD DAY OF OCTOBER 2023 / 11TH ASWINA, 1945 WP(C) NO. 30949 OF 2023 PETITIONER: M/S SAKTHI TIMBER AND PLYWOODS KUTHUPARAMBA, KANNUR-- 670643 REPRESENTED BY ITS PARTNER FAIZAL. K.V., BY ADVS. RAJESH NAMBIAR SINDHU K.NAMBIAR RESPONDENTS: 1 ASSISTANT COMMISSIONER STATE GOODS AND SERVICE TAX DEPARTMENT, KUTHUPRAMBA, KANNUR, PIN – 670643 2 DEPUTY COMMISSIONER ( ARREAR RECOVERY) OFFICE OF THE JOINT COMMISSIONER, STATE GOODS AND SERVICE TAX DEPARTMENT, ADDITIONAL CIVIL STATION , KANNUR, PIN – 670002 3 UNION OF INDIA REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE( DEPARTMENT OF REVENUE) GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN – 110001 4 CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS GST POLICY WING, NORTH BLOCK, NEW DELHI-110001 REPRESENTED BY PRINCIPAL COMMISSIONER (GST)
5 STATE OF KERALA REPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001 OTHER PRESENT: JASMINE M.M.-GOVERNMENT PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03.10.2023, THE COURT ON THE SAME DAY DELIVERED THE F
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.