2024 (1) TMI 1347 - HC - GST

Tax authority told to reconsider IGST credit set-off claim; no coercive recovery until application decided, writ otherwise dismissed

The HC disposed of the writ petition filed by the assessee challenging denial of set-off of IGST input tax credit wrongly claimed as CGST and SGST for ... Set-off of input tax credit - misclassification of IGST credit in GSTR-3B - rectification under Rule 89(1)(A) of the GST Rules, 2017 - opportunity of hearing before final order - stay of coercive measures pending decisionRectification under Rule 89(1)(A) of the GST Rules, 2017 - set-off of input tax credit - misclassification of IGST credit in GSTR-3B - Direction to consider the petitioner's rectification application filed in GST RFD-01 (Ext.P4) for correction of wrongly claimed input tax credit - HELD THAT: - The petitioner filed Ext.P4 on 21.12.2023 under Rule 89(1)(A) seeking rectification of returns where IGST credit reflected in GSTR-2A was inadvertently claimed against CGST and SGST in GSTR-3B for the stated period. The Court found that the rectification application requires consideration and accordingly directed the 6th respondent to consider Ext.P4 expeditiously and pass necessary orders in accordance with law. The Court further recorded that the petitioner must be afforded an opportunity of hearing before the final order on Ext.P4 is passed. The direction is remedial and procedural, requiring the administrative authority to examine and dispose of the rectification application on its merits following statutory procedure. [Paras 4]6th respondent directed to consider Ext.P4 expeditiously, afford the petitioner an opportunity of hearing, and pass orders thereon in accordance with law.Stay of coercive measures pending decision - opportunity of hearing before final order - Interim protection from coercive measures in respect of the tax assessed in Ext.P1 until final disposal of Ext.P4 - HELD THAT: - In view of the pendency of the rectification application and the Court's direction for its expeditious consideration, the Court ordered that until a final order is passed on Ext.P4 no coercive measures shall be taken for recovery of the tax assessed in Ext.P1. This interim protection is conditional on the final decision on the rectification application and does not adjudicate the merits of the assessed tax, but preserves the petitioner's position during administrative adjudication. [Paras 4]No coercive measures shall be taken against the petitioner for realisation of the tax amount assessed in Ext.P1 until Ext.P4 is finally disposed of.Final Conclusion: Writ petition disposed by directing the 6th respondent to expeditiously consider and decide the petitioner's rectification application (Ext.P4) in accordance with law after affording an opportunity of hearing; interim protection granted restraining coercive recovery measures in respect of Ext.P1 until such decision is rendered. The petitioner sought a writ of mandamus to set off IGST input tax credit wrongly claimed under CGST and SGST. The court directed the 6th respondent to consider the rectification application and refrain from coercive measures until a decision is made. The writ petition was disposed of with this direction.