GST Order Overturned: ITC Denial Due to GSTIN Errors Sent Back for Review Following 2023 Circular and Legal Precedents.

The HC set aside the impugned order under Section 73 of the UP GST Act, 2017, regarding the denial of ITC due to GSTIN discrepancies. The court remanded the matter to the respondent for fresh decisions, emphasizing adherence to the Circular dated 2.1.2023 and relevant legal precedents, thereby allowing the writ petitions.

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Issues Involved:
The issues involved in the judgment are related to the assailing of an order passed by the respondent under the provisions of Section 73 of the UP Goods and Services Tax Act, 2017, regarding the migration of GSTINs and the denial of Input Tax Credit (ITC) to the petitioner.

Judgment Details:
The petitioner was registered under the VAT Act and the Service Tax Act before the GST regime. Due to authorities' fault, two GSTINs were provided to the petitioner, causing confusion in business transactions. The petitioner claimed ITC on one GSTIN but faced proceedings due to discrepancies. A circular issued during the case clarified procedures for handling such discrepancies in ITC claims.

The petitioner sought the benefit of the circular, arguing that denial of ITC was unjust. The Circular dated 2.1.2023 outlined procedures for handling discrepancies in ITC claims due to wrong GSTIN declarations by suppliers. The court noted that benefits of circulars issued during litigation cannot be denied.

Citing legal precedents, the court emphasized that benefits of beneficial circulars should not be denied to the assessee during the pendency of appeals. The court referred to a Division Bench judgment highlighting the importance of following circular procedures and remanding cases for fresh decisions based on circular provisions.

Considering the legal principles and circumstances of the case, the court set aside the impugned order and remanded the matters to the respondent for fresh decisions within a specified time frame, taking into account the Circular dated 2.1.2023 and relevant judgments cited by the petitioner.

In conclusion, the writ petitions were allowed based on the interpretation of the circular and legal precedents, leading to the setting aside of the previous order and remand for fresh decisions.

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