M/S Orient Traders vs. The Deputy Commissioner Of Commercial Taxes

WP/2911/2022HC KarnatakaGSTCNR KAHC01005912202216 December 2022Bench: S.R.KRISHNA KUMAR12 pages

For Petitioner: SRI. VIKRAM HUILGOL., SENIOR COUNSEL APPEARING FOR SRI. SYED KHANRUDDIN., ADVOCATEFor Respondent: SRI.HEMA KUMAR., AGA

AI SummaryPartly Allowed

Held

The Court held that the errors were bona fide and occurred during the initial phase of GST implementation. Allowing rectification would not cause revenue loss or upset the credit chain.

Facts

The petitioner inadvertently claimed Input Tax Credit (ITC) under the wrong columns in their GST returns for July 2017 and March 2018. This led to a mismatch between GSTR-3B and GSTR-2A, and the authorities proposed to disallow the ITC.

Key Issues

Whether the petitioner should be allowed to rectify inadvertent errors in GST returns filed during the initial GST regime, and if the Bharti Airtel judgment applies.

Sections Cited

Section 65(6), Section 73(1), Section 39(9)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

1 IN THE HIGH COURT OF KARNATAKA, BENGALURU DATED THIS THE 16TH DAY OF DECEMBER, 2022 BEFORE THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR WRIT PETITION No.2911 OF 2022 (T-RES) BETWEEN: M/S ORIENT TRADERS NO.163, SP ROAD, CITY MARKET, BENGALURU-560 002. REPRESENTED BY ITS PROPRIETOR, ILYAS NISARALI ADENWALA. …PETITIONER (BY SRI. VIKRAM HUILGOL., SENIOR COUNSEL APPEARING FOR SRI. SYED KHANRUDDIN., ADVOCATE) AND: 1 . THE DEPUTY COMMISSIONER OF COMMERCIAL TAXES (AUDIT)-3, 4, DGSTO-3, ROOM NO.225, BMTC BUILDING, 2ND FLOOR, SHANTINAGAR, BENGALURU-560027. 2 . JOINT COMMISSIONER OF COMMERCIAL TAXES DGSTO-03, BENGALURU-560027. …RESPONDENTS (BY SRI.HEMA KUMAR., AGA) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE R1 TO ALLOW THE PETITIONER TO RECTIFY THE GST RETURNS FILED FOR THE MONTHS OF JULY,2017 AND MARCH 2018 AND ETC. THIS W.P. COMING ON FOR ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:- 2

In this petition, petitioner has sought for the following reliefs:- “ i)

Issue a Writ of Mandamus, directing the Respondent No.1 to allow the Petition

The judgment continues below.

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Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.