M/S Deepak Sales Corporation vs. Union Of INDIA And Others
Held
The Court held that if excess ITC is reversed before utilization, neither interest nor penalty is leviable. The petitioner had sufficient balance of ITC, and the excess amount was not utilized.
Facts
The petitioner inadvertently claimed excess Input Tax Credit (ITC) due to a data entry error. Although the excess ITC was reversed later, the authorities demanded interest and penalty, holding that a portion of the excess ITC was utilized.
Key Issues
Whether interest and penalty are leviable on excess ITC when it is reversed before utilization and not actually used to discharge tax liability.
Sections Cited
Section 50
AI-generated summary — verify with the full judgment below
Neutral Citation No.2023:PHHC:131711-DB IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.283 of 2023 Date of Decision: 21.09.2023 Deepak Sales Corporation ... Petitioner
Versus Union of India and others ... Respondents CORAM: HON'BLE MS. JUSTICE RITU BAHRI HON'BLE MRS. JUSTICE MANISHA BATRA Present: Mr. Amrinder Singh, Advocate, for the petitioner. Mr. Rishabh Kapoor, Senior Standing Counsel, for the respondents. *** RITU BAHRI
, J.
The instant petition invoking the writ jurisdiction of this Court has been filed by the petitioner under Article 226 of the Constitution thereby challenging the order dated 29.04.2022 passed by the Commissioner (Appeals) i.e. respondent No.4 whereby the appeal filed by the petitioner challenging the order passed by respondent No.3 had been dismissed and it was held that the petitioner had utilized the amount of Rs.21,13,354/- from the excess Input Tax Credit (ITC) taken by it and was liable for imposition of equal penalty and to pay interest.
The factual matrix of the case in brief is that the petitioner which is a proprietorship trading concern operating since the year 2010, was previously registered under the
The judgment continues below.
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Reproduced from the public record of the Punjab and Haryana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.