Universal Trading Company vs. The State Tax Officer
Held
The Court held that the petitioner failed to discharge the burden of proving the genuineness of the ITC claim with credible evidence before the assessing authority. Finding no violation of natural justice or denial of sufficient opportunity, the High Court declined to interfere with the assessment order in its writ jurisdiction.
Facts
The petitioner, a registered dealer, was found to have availed excess Input Tax Credit (ITC) for 2017-2018, evidenced by discrepancies between GSTR 1, GSTR 3B, and GSTR 2A. Despite a show cause notice, the petitioner failed to provide evidence of genuine inward supplies and tax payment, leading the assessing authority to disallow the excess ITC and impose interest and penalty.
Key Issues
Whether Input Tax Credit can be denied based on differences between GSTR 3B and GSTR 2A if the assessee fails to provide evidence of genuine transactions, and whether such denial violates principles of natural justice when opportunities to substantiate the claim were provided.
Sections Cited
Section 155, Section 16(2)(c), Section 73(1)
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 MONDAY, THE 18TH DAY OF SEPTEMBER 2023 / 27TH BHADRA, 1945 WP(C) NO. 29918 OF 2023 PETITIONER: UNIVERSAL TRADING COMPANY UNIVERSAL PRINTERS, THOMBAKADAV JUNCTION, CHOWARA POST, ALUVA, ERNAKULAM DISTRICT, PIN 683 571 REPRESENTED BY ITS SOLE PROPRIETOR, VELUTHEDATHAKATHOOT MUHAMMED SHAMSUDEEN, AGED 52, S/O.MUHAMMED, RESIDING AT 1/496A1, THOMBAKADAV JUNCTION, S.S. BUILDING, CHOWARA POST, ALUVA, ERNAKULAM DISTRICT,, PIN – 683 571. BY ADV P.M.POULOSE RESPONDENTS: 1 THE STATE TAX OFFICER ALUVA CIRCLE, SGST DEPARTMENT, KAP COMMERCIAL COMPLEX, PUMP JUNCTION, RAILWAY STATION ROAD, ALUVA, PIN – 683 101. 2 DEPUTY COMMISSIONER OF STATE TAX ARREAR RECOVERY, STATE GOODS & SERVICE TAX DEPARTMENT, MINI CIVIL STATION, ALUVA, ERNAKULAM DISTRICT, PIN – 683 101. 3 COMMISSIONER OF STATE GOODS & SERVICE TAX DEPARTMENT TAX TOWER, 9TH FLOOR, KILLIPPALAM, KARAMANA.P.O., THIRUVANANTHAPURAM,, PIN – 695 002. 4 STATE OF KERALA REPRESENTED BY ADDITIONAL CHIEF SECRETARY (TAXES), GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN – 695 001. 5 UNION OF INDIA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, MINIS
The judgment continues below.
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