IGST credit refund claim on branch transfer to be considered on merits after reversal of wrongly availed input credit.

A representation seeking credit or refund of IGST arising from a branch transfer and reversal of wrongly availed credit was required to be considered by the tax authority. The Court noted a prima facie case on the petitioner's claim that IGST was paid on the transfer, credit was mistakenly taken in the Telangana return, and was later reversed. The respondent stated that the representation would be examined on merits, and was directed to decide it in accordance with law within two months after hearing the petitioner before any adverse order is passed.

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Issues: Whether the representation seeking credit or refund of IGST arising from branch transfer and reversal of wrongly availed credit required consideration by the tax authority.

Analysis: The petitioner asserted that IGST was paid on a branch transfer from Telangana to Tamil Nadu, that credit was mistakenly availed in the Telangana return, and that the same was later reversed. The Court recorded that a prima facie case had been made out and noted the respondent's statement that the representation would be considered and disposed of on merits.

Outcome: The respondent was directed to consider the representation dated 06.01.2025 and pass appropriate orders on merits and in accordance with law within two months, after hearing the petitioner before any adverse order is passed.

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