M/S Vivo Mobile INDIA Private LTD. vs. Union Of INDIA And 4 Others
Held
The Court held that the revenue authorities erred in calculating ITC on a month-to-month basis instead of a cumulative period. The Court also found the recovery of the entire disputed amount, including the pre-deposited portion, to be unacceptable.
Facts
The petitioner challenged an order demanding reversal of Input Tax Credit (ITC) and imposing penalty and interest, alleging excess utilization of ITC. The revenue authorities recovered the entire disputed amount, including tax and penalty, even though the petitioner had pre-deposited 10% of the demand.
Key Issues
Whether ITC should be reconciled on a cumulative or month-to-month basis, and the legality of recovering the entire disputed amount including pre-deposited sums.
Sections Cited
Rule 36(4), Section 74
AI-generated summary — verify with the full judgment below
A.F.R. Neutral Citation No. - 2023:AHC:194323-DB Court No. - 39 Case :- WRIT TAX No. - 433 of 2021 Petitioner :- M/S Vivo Mobile India Private Ltd. Respondent :- Union Of India And 4 Others Counsel for Petitioner :- Nishant Mishra,Alok Yadav Counsel for Respondent :- A.S.G.I.,Ashok Singh,C.S.C.,Manu Ghildyal Hon'ble Saumitra Dayal Singh,J. Hon'ble Vinod Diwakar,J.
Heard Sri Tarun Gulati, learned Senior Counsel assisted by Sri Nishant Mishra, Sri Kishore Kunal, and Ms. Vedika Nath, learned counsel for the petitioner, Sri Gaurav Mahajan, learned counsel for Central Board of Indirect Taxes, Sri Manish Goyal, learned Additional Advocate General assisted by Sri Nimai Dass, learned Additional Chief Standing Counsel and Sri Ankur Agarwal, learned Standing Counsel for the State of Uttar Pradesh.
Present petition has been filed for various reliefs described in the prayer clause. At the same time, after exchange of affidavits and, upon the matter being heard, prayer nos. B, C and D alone have been pressed. Other prayers have not been pressed, at this stage. Thus, the challenge raised to the vires of Rule 36(4) of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to
The judgment continues below.
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