HC Remanded Matter as ITC Was Denied for Mismatch Between GSTR-3B & GSTR-2A Without Asking for Certificates From Supplier

Case Details: Kali Aerated Water Works v. Superintendent of C.G.S.T. & Central Excise - [2024] 164 taxmann.com 363 (Madras)

Judiciary and Counsel Details

• C. Saravanan, J.
• A. Chandrasekaran for the Petitioner.
• R. Nandhakumar, Senior Panel Counsel & Ms S. Ragaventhre, Junior Standing Counsel for the Respondent.

Facts of the Case

The petitioner was engaged in manufacturing and supply of aerated water and beverages. The department issued a show cause notice on account of variation between ITC availed by petitioner in Form GSTR-3B and auto-populated Form GSTR-2A. Thereafter, the order was passed and it filed writ petition against the demand.

High Court Held

The Honorable High Court noted that the dispute had arisen on account of the variations between the input tax credit availed by the petitioner in Form GSTR-3B and the auto-populated input tax credit in Form GSTR-2A. After passing of impugned order, the CBIC has issued Circular No.183/15/2022-GST, dated 27-12-2022 which provides that proper officer shall ask concerned assessee to produce a certificate from concerned supplier to effect that supplies had actually been made

The Court also noted that it has already set aside the assessment orders in similar cases and remitted the case back to the Assessing Officer to pass fresh orders by applying the Circular. Therefore, it was held that the impugned order was to be set aside and matter was to be remitted. The Court also granted liberty to petitioner to make additional submission, if any, together with certificate as is contemplated under the circular.