Can assessment order be passed for difference in the ITC claimed by the petitioner in its GSTR-2B and the information captured in the GSTR-2A as compared to the GSTR 1 of the supplier?

ITC claimed by petitioner GSTR-2B

Case Title

M/s Progressive Stone Works vs The Joint Commissioner(ST) Vellore & Others.

Court

Madras High Court

Honorable Judges

Justice C.Saravanan

Citation

2022 (6) GSTPanacea 238 HC Madras

W.P.No 17109 & 17111 of 2021  and W.P.No 18314 & 18137 of 2021

Judgement Date

16-June-2022

Council for Petitioner

J.Arasi Ponmalar

Council for Respondent

Richardsons Wilson

Section

Section 107 of the CGST Act 2017

In Favour of

Writ petition cannot be entertained ignoring the statutory dispensation

The Madras High Court bench of Justice C.Saravanan has held that  the petitioner was expected to compare to input tax credit availed with the information contained in Form GSTR-2A, Form GSTR-4A or Form GSTR-6A as the case may be. The petitioner has an alternate remedy by way of an appeal before the Appellate Commissioner.

FACTS OF THE CASE

The petitioner has challenged the respective Assessment Orders in these writ petitions for the Assessment Years 2017-18 and 2018-19. There is difference in the ITC claimed by the petitioner in its GSTR-2B and the information captured in the GSTR-2A as compared to the GSTR 1 of the supplier for the respective Assessment years.

The demand has been workout as Rs.8,21,123/- and Rs.3,53,519/- for the Assessment Year 2017-18 and Assessment Year 2018-19 respectively

petitioner claimed that credit availed on the strength of invoices issued by the supplier under the provisions of the Goods and Service Tax Act, 2017 cannot be denied as input tax credit was availed on the strength of the invoices on which tax charged by the supplier of the petitioner

It is submitted that the mistake committed by the supplier in not properly uploading the information in their GSTR-1 would not come in the legitimate by way of availing input tax credit to the petitioner

It is submitted that the mistake committed by the supplier in not properly uploading the information in their GSTR-1 would not come in the legitimate by way of availing input tax credit to the petitioner

It is further submitted that by clarification in Circular No.125/44/2019-GST dated 18.11.2019, refunds are being given in the case of reports claim refund under Rule 89 of the respective CGST Rules under similar circumstances whereas in the case of domestic supplier, no such discussion has been given and therefore the result is in unfair discrimination

Attention was also drawn to Rules 58 & 59 of CGST respective Rules under the respective enactments which read pari-material

ITC claimed by petitioner GSTR-2B

COURT HELD

Considering the facts as recorded, held that the petitioner was expected to compare to input tax credit availed with the information contained in Form GSTR-2A, Form GSTR-4A or Form GSTR-6A as the case may be.

Where the statutory authority has not acted in accordance with the provisions of the enactment in question.

The petitioner has an alternate remedy by way of an appeal before the Appellate Commissioner under Section 107 of the CGST Act, 2007. Therefore, this writ petition cannot be entertained ignoring the statutory dispensation

ITC claimed by petitioner GSTR-2B

ANALYSIS OF THE JUDGEMENT

These writ petitions filed under Article 226 of the Constitution are liable to be dismissed. I am therefore inclined to dismiss the present writ petitions. I however give liberty to the petitioner to file a statutory appeal before the Appellate Commissioner within a period of thirty days from the date of receipt of copy of this order. If such an appeal is filed within such time, the appeal shall be numbered and taken up for hearing on its turn.

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M/s Progressive Stone Works

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Madras High Court