HC Set Aside Order and Remanded Matter to Follow Procedure Prescribed for Difference in ITC Under GSTR-3B and GSTR-2A

Case Details: R.S. Marketing and Logistics (P.) Ltd. v. Commercial Tax Officer - [2024] 164 taxmann.com 9 (Karnataka)

Judiciary and Counsel Details

• S. Sunil Dutt Yadav, J.
• Pradyumna Hejib, Adv. for the Petitioner.
• Hema Kumar, AGA for the Respondent.

Facts of the Case

The petitioner was engaged in the business of logistics and there were certain discrepancies between the ITC claimed as per GSTR-3B and GSTR-2A. The department noticed such discrepancies and directed to reverse the excess claim of ITC. It filed writ petition and contended that it was not given sufficient opportunity to explain the discrepancies.

High Court Held

The Honorable High Court noted that the petitioner was not given the opportunity to explain the discrepancies. However, the Court also noted that the CBIC has issued Circular No. 183/15/2022-GST dated 27-12-2022 and this Circular is made applicable specifically with respect to the financial year 2017-18 and 2018-19. But in the instant case, the adjudicating authority has not followed the procedure prescribed in the said Circular.

Therefore, the Court held that the impugned order was to be set aside and the matter was remitted back for fresh consideration in terms of the observations made in the Circular.