Geetha Agencies Vs Deputy Commissioner of State Tax
Date: October 2, 2023
Subject Matter
Claimed ITC, reflected in Form GSTR 2A, though with some delay, cannot be denied
Summary
The case involves a writ petition filed against an assessment order and a recovery notice related to the denial of input tax credit. The petitioner claims that there was a mismatch in the GSTR 2A and GSTR 3B forms. The petitioner argues that they claimed the input tax credit based on valid invoices but some suppliers mistakenly uploaded data as '0' tax items. The reply from the petitioner was not considered convincing by the authorities, and an order was passed for recovery of the denied input tax, along with interest and penalty. The petitioner argues that the tax was actually collected by the supplier and reflects in the GSTR 2A. The court allows the petitioner an opportunity to prove their claim by presenting relevant documents to the assessing authority. The writ petition is allowed and the assessed order and recovery notice are set aside.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
Instant writ petition has been filed impugning Exhibit P1 assessment order and Exhibit P2 recovery notice. The petitioner’s input tax credit for an amount of Rs.1,10769/-(SGST + CGST), has been denied on the ground that there is mismatch in GSTR 2A and GSTR 3B.
2. In reply to the show cause notice, writ petitioner/assessee had submitted that the petitioner had claimed the input tax as specified in GSTR-3B, based on valid invoices available with them. Petitioner also submitted that certain suppliers while uploading the data in GSTR- 1, due to certain technical problem in the website, the data was uploaded as ‘0’ tax items.
3. The reply submitted by the petitioner/assessee was not found convincing and satisfactory to drop the proceedings and GST DRC-01A was issued to the petitioner. Thereafter, notice under Section 73 of the State Goods and Services Tax Act, 2017 was issued and Exhibit P1 order came to be passed for an amount of Rs. 3,61,304/-, which would include denied input tax to an extent of Rs. 1,62,526/- + interest @ 79.5% Rs.1,78,778/- and penalty of Rs.20,000/-. For realisation of the said amount, revenue recovery notice Exhibit P2 has been issued.
4. Learned counsel for the petitioner submits that the supplier/dealer has remitted the tax collected from the petitioner for inward supply, with some delay. There is no difference between the GSTR 3B, on the basis of which the petitioner claimed the input tax credit and the GSTR 2A, reflecting the tax paid by the supplier/dealer. If the petitioner is given an opportunity, he will prove that the input tax credit claimed by him is correct and the tax amount for which the input tax credit claimed by the petitioner is truly reflected in GSTR 2A.
5. Learned counsel for the petitioner also placed reliance on the judgment of this Court dated 12.9.2023 in W.P(C).No.29769 of 2023, wherein this court held that denial of input tax credit merely on the ground that there is difference between GSTR-2A and GSTR-3B should not be correct, if the assessee, on the basis of the evidence and documents is able to prove that in fact he has paid the tax to supplier/dealer, who did not pay tax to the Government.
6. In the present case, learned counsel for the petitioner submitted that this is not a case of nonpayment of tax by supplier dealer. In fact the tax was collected by the supplier/dealer from the petitioner, for which he has claimed the input tax credit, is reflected in the form GSTR 2A.
7. Considering the said aspect of the matter that as per the stand of the petitioner/assessee, the tax for which the petitioner claimed input tax credit is reflected in Form GSTR 2A, though with some delay, the claim of the petitioner for input tax credit which has been denied in Exhibit P1 does not appear to be correct.
8. To prove his case, one opportunity is granted to the petitioner to appear before the Assessing authority, within seven days from today with all relevant documents.
The present writ petition is allowed. Impugned order Exhibit P1 and notice Exhibit P2 are set aside. Petitioner is directed to appear before the assessing authority within seven days from today with all relevant documents and on examination of the documents, if the assessing authority is satisfied that the petitioner’s claim for input tax credit denied by Exhibit P1 order, is bonafied, he be granted the said benefit and a revised order be issued.