HC Set Aside Order Denying ITC & Directed Dept. to Give One More Opportunity to Prove Claim of ITC

Case Details: Geetha Agencies v. Deputy Commissioner of State Tax - [2023] 156 taxmann.com 165 (Kerala)

Judiciary and Counsel Details

• • Dinesh Kumar Singh, J.
  • Rajesh Nambiar & Sindhu K. Nambiar, Advs. for the Petitioner.
  • Reshmita Ramachandran for the Respondent.

Facts of the Case

In the present case, a notice was issued to assessee for difference of ITC between GSTR-3B and GSTR-2A. The department passed order levying interest and penalty since the reply submitted by the assessee was not found convincing and satisfactory. The assessee filed writ petition against the demand order and contended that there was no difference between the GSTR 3B & GSTR-2A, on the basis of which the ITC was claimed.

High Court Held

The Honorable High Court noted that the invoices for which the assessee claimed input tax credit were reflected in Form GSTR 2A, though with some delay. Therefore, the claim of the assessee for input tax credit which had been denied in impugned order did not appear to be correct. Thus, the Court held that the impugned order was to be quashed and one more opportunity to be granted to the assessee to appear before the Assessing authority with all relevant documents.