SCN Quashed for Wrong Availment of ITC as Assessee Filed Form Manually Due to Dysfunctional Portal

Case Details: Tikona Infinet (P.) Ltd. v. Union of India - [2024] 168 taxmann.com 680 (Bombay)

Judiciary and Counsel Details

• M.S. Sonak & Jitendra Jain, JJ.
• Prasad Paranjape, Adv. & Bhavya Varma, Lumiere Law Partners for the Petitioner. 
• J.B. Mishra & Ram Ochani for the Respondent.

Facts of the Case

The petitioner was engaged in providing internet services. It entered into Business Transfer Agreement (BTA) with another company. It was unable to file Form GST ITC-02 on department’s common portal due to non-availability of form. It filed the form manually. The department issued SCN proposing to recover ITC with interest and penalty on the ground of non-filing of Form GST ITC-02 electronically. It filed writ petition against the SCN and contended that such notice was wholly without jurisdiction.

High Court Held

The Honorable High Court noted that Form GST ITC-02 was not available for filing electronically during the relevant period and therefore, the petitioner filed aforesaid form manually. The Court further noted that technicalities created by department should not be put forth to defeat statutory rights and entitlement of assessee. Therefore, it was held that the impugned SCN ought not to have been issued to petitioner and the SCN was quashed.

List of Cases Reviewed

• Savita Oil Technologies Ltd and Savita Polymers Ltd. v. Union of India and ors. [2023 (7) TMI 877] [Paras 38,40]
• Pacific Industries Ltd v. Union of India [D. B. Civil Writ Petition No.12190/2019] [Paras 37,40] followed.

List of Cases Referred to

• In Pacific Industries Ltd v. Union of India, D. B. (para 35).