Tax Credit Dispute Resolved: Petitioner Wins Right to Resubmit Evidence and Challenge Original Denial of Input Tax Credit

HC allowed petitioner's writ challenging tax credit denial. Court set aside original order and remanded matter to tax authority, directing fresh consideration. Petitioner granted opportunity to submit additional documents and supporting evidence regarding Input Tax Credit discrepancies. No costs imposed, with connected petitions closed.

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Issues:
Challenge to order denying Input Tax Credit (ITC) based on GSTR-3B and GSTR-2A/GSTR-2B comparison.

Analysis:
The petitioner, an assessee, challenged an order denying ITC based on discrepancies between GSTR-3B and GSTR-2A/GSTR-2B. The respondent issued a show cause notice denying ITC of a specific amount towards CGST and SGST. The petitioner claimed to have paid the tax and filed returns, citing errors by suppliers for the discrepancies. The petitioner submitted a certificate from suppliers and requested an opportunity to file necessary documents.

The petitioner's counsel argued that the respondent failed to consider the certificate and supporting documents provided by the petitioner, leading to the order against the petitioner. The counsel emphasized that the petitioner was willing to submit the required documents if given another chance. The Government Advocate acknowledged the recovery of disputed tax from the petitioner and supported the petitioner's request for an opportunity to submit the necessary documents.

The Court noted that the impugned order was passed due to the petitioner's failure to produce required documents, despite possessing them. However, considering the petitioner's possession of supportive documents now and the fault lying with the suppliers for the initial errors, the Court found merit in the petitioner's request for a fresh opportunity to present the documents.

Consequently, the Court set aside the impugned order and remanded the matter to the Authority for fresh consideration. The Authority was directed to allow the petitioner to file additional replies with all necessary documents, grant a personal hearing, and pass final orders in accordance with the law.

In conclusion, the Writ Petition was allowed on the terms mentioned, with no costs imposed. The connected Miscellaneous Petitions were closed as a result of the judgment.

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