ITC Can’t Be Rejected Solely on Ground that Assessee Had Not Claimed ITC in GSTR-3B | Madras HC

Case Details: Sri Shanmuga Hardwares Electricals v. State Tax Officer - [2024] 159 taxmann.com 756 (Madras)

Judiciary and Counsel Details

• • Senthilkumar Ramamoorthy, J.
  • Ms P. Jayalakshmi & S. Muthu Venkataraman for the Petitioner.
  • T.N.C. Kaushik for the Respondent.

Facts of the Case

The petitioner was engaged in trade of electrical products and hardware. The GST Authorities rejected the ITC claim on the grounds that the petitioner had not claimed ITC in the GSTR-3B returns. The petitioner filed writ petition and stated that GSTR-9 i.e. annual returns were filed duly reflecting ITC claims and the same was duly reflected in GSTR 2A returns but ITC claim was rejected solely on the ground that the petitioner had not claimed ITC in the GSTR-3B returns.

High Court Held

The Honorable High Court noted that in the present case, the said ITC claims were rejected on ground that assessee had not claimed ITC in GSTR 3B returns. The Court observed that when registered person asserts that he is eligible for ITC by referring to GSTR-2A and GSTR-9 returns, the assessing officer should examine whether ITC claim is valid by examining all relevant documents, including by calling upon registered person to provide such documents.

In instant case, ITC claims were rejected on ground that assessee had not claimed ITC in GSTR 3B returns and reference was not made to GSTR-2A and GSTR-9 returns. Therefore, it was held that order rejecting said claim was to be quashed and matter was remanded back.