2024 (9) TMI 1483 - HC - GST

Taxpayer wins ITC adjustment case involving dual GSTIN under single PAN using Circular 183/15/2022

HC allowed petition challenging non-adjustment of ITC in GSTR-2A where petitioner was issued two different GSTIN against single PAN. Court applied ... Adjustment of Input Tax Credit - benefit of ITC despite supplier declaring wrong GSTIN of recipient - application of Board Circular No.183/15/2022-GST - quash and remit for fresh adjudication in terms of administrative circularApplication of Board Circular No.183/15/2022-GST - adjustment of Input Tax Credit - Circular No.183/15/2022-GST applies and the impugned order is quashed with a direction to decide afresh in terms of the Circular so as to permit adjustment of ITC appearing in one GSTIN to the GSTIN on which returns were filed where two GSTINs issued against one PAN caused mis-reporting. - HELD THAT: - The Court held that Circular No.183/15/2022-GST is attracted to the facts where two GSTINs were issued against the same PAN and supplies had been reflected under one GSTIN in suppliers' records while returns and ITC claim were filed under another GSTIN. The petitioner had repeatedly drawn the authorities' attention to the anomaly and the respondent authorities had not remedied the position. Counsel for the respondent accepted that the proposition in the Circular should govern the case. The Court found the decision in M/s. Santosh Kumar to be on a similar factual matrix and agreed with its application. In consequence, the impugned order demanding recovery of ITC is set aside and the matter is remitted to the assessing authority for fresh adjudication strictly in accordance with the procedure and relief envisaged by Circular No.183/15/2022-GST.Impugned order set aside; matter remitted to respondent No.4 to pass a fresh order in terms of Circular No.183/15/2022-GST.Final Conclusion: Writ petition allowed; impugned assessment order quashed and proceedings remitted for fresh decision by the assessing authority in terms of Board Circular No.183/15/2022-GST. Issues:Adjustment of Input Tax Credit (ITC) between two GSTINs issued against one PAN, challenge to order under CGST Act and UPGST Act, excess ITC availed, demand and recovery of alleged excess ITC, application of Circular No.183/15/2022-GST, compliance with procedure specified in Circular, quashing of impugned order, direction for fresh order.Analysis:The petitioner, engaged in the supply of TATA branded trucks, faced issues due to two GSTINs issued against one PAN. The petitioner sought adjustment of ITC between the GSTINs, leading to a challenge against the order under the CGST Act and UPGST Act. Despite repeated requests for resolution, the matter remained unresolved, impacting the petitioner's transactions with suppliers, including TATA Motors Ltd. The petitioner faced a demand for alleged excess ITC, leading to a detailed representation before authorities. The petitioner approached the High Court seeking adjustment of ITC, challenging the impugned order dated December 12, 2023.During the proceedings, the petitioner cited Circular No.183/15/2022-GST, emphasizing the need for ITC adjustment even if suppliers declared the wrong GSTIN. Reference was made to a previous judgment where similar circumstances led to the setting aside of orders and a direction for fresh consideration in line with the Circular. Respondents did not contest this proposition, agreeing to remit the matter for a fresh decision in compliance with the Circular.The Court analyzed the submissions and found that Circular No.183/15/2022-GST was applicable to the case. Drawing parallels with the previous judgment, the Court agreed with the approach taken in that case. Consequently, the impugned order dated December 22, 2023 was quashed, and a direction was issued for the Joint Commissioner to pass a fresh order in accordance with the Circular. The writ petition was allowed, providing relief to the petitioner in the matter of ITC adjustment and resolving the issues arising from the multiple GSTINs issued against one PAN.