M/S Henna Medicals vs. State Tax Officer
Held
The Court held that input tax credit cannot be denied merely due to a difference between GSTR 2A and GSTR 3B. It quashed the impugned orders and remitted the matter back to the Assessing Authority to allow the petitioner to provide evidence for their ITC claim.
Facts
The petitioner challenged an assessment order and a recovery notice, which denied input tax credit (ITC) amounting to Rs. 2,58,116/- along with interest and penalty. The denial was solely based on a discrepancy between the GSTR 2A and GSTR 3B forms.
Key Issues
Can input tax credit be denied solely on the ground of a mismatch between GSTR 2A and GSTR 3B, without providing the assessee an opportunity to submit other evidence to substantiate their claim?
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 19TH DAY OF SEPTEMBER 2023 / 28TH BHADRA, 1945 WP(C) NO. 30660 OF 2023 PETITIONER/S:
M/S HENNA MEDICALS BUS STAND ROAD, PANOOR, KANNUR, REPRESENTED BY PROPRIETOR SMT. POOVATANTAVIDA SUHARABI, PIN - 670692
BY ADVS.RAJESH NAMBIAR; SINDHU K.NAMBIAR RESPONDENT/S: 1 STATE TAX OFFICERSECOND CIRCLE, STATE GOODS AND SERVICE TAX DEPARTMENT, OPPOSITE MUNCIPAL TOWN HALL, CHIRAKKARA, THALASSERY, PIN - 670104 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 INDIAREPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE( DEPARTMENT OF REVENUE) GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI, PIN - 110001 4 CENTRAL BOARD OF INDIRECT TAXES & CUSTOMSGST POLICY WING, NORTH BLOCK, NEW DELHI REPRESENTED BY PRINCIPAL COMMISSIONER ( GST), PIN - 110001 5 STATE OF KERALAREPRESENTED BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001
RESHMITA RAMACHANDRAN-GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
The judgment continues below.
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