HC Set Aside Order Rejecting ITC Claim of Assessee Where Supplier Wrongly Mentioned GSTIN of Sister Concern

Case Details: Tvl. Hansraj and Company v. Assistant Commissioner (ST) - [2024] 160 taxmann.com 555 (Madras)

Judiciary and Counsel Details

• Senthilkumar Ramamoorthy, J
• K.M. Malarmannan, for the Petitioner. 
• T.N.C. Kaushik, AGP (T) for the Respondent.

Facts of the Case

The petitioner received a notice alleging that it had made an excess claim of ITC and this was evident on comparing GSTR-3B return with GSTR-2A return. It submitted that the relevant invoice was issued by the petitioner’s supplier but it had wrongly indicated the GSTIN of the sister concern of the petitioner. However, the reply was disregarded and the proposal to impose tax, interest and penalty was confirmed. Therefore, it filed writ petition against the order.

High Court Held

The Honorable High Court noted that the documents on record, such as invoice and the GSTR-1 return of supplier, prima facie indicate that the GSTIN of sister concern of petitioner was wrongly mentioned by supplier in the returns and thus, in such scenario, the petitioner would have been unjustly deprived of ITC.

Therefore, the Court held that the impugned order was to be quashed and matter was to be remanded to Assessing Officer to provide petitioner with an opportunity to redress grievance.