2026 (1) TMI 108 - HC - GST

Input tax credit (ITC) claim disallowed due to late GSTR-3B filing; appeal rejection on limitation set aside, remitted.

The dominant issue was whether rejection of the assessee's appeal against disallowance of input tax credit (ITC) solely on limitation, without considering ... Excess ITC claimed in the GSTR 3B return which was delayed filed - major ITC was disallowed based on timing and matching grounds - respondent without considering the unintended delay, rejected the appeal on the ground of limitation - HELD THAT:- The respondent authorities are directed to pass a fresh order, dealing with all the contentions raised by the petitioner and after affording due opportunity of hearing. The said exercise shall be completed within a period of twelve weeks from the date of receipt of a writ of this order. Petition disposed off. A writ petition challenged an order dated 30.04.2025 rejecting a First Appeal as time-barred and sought a direction to consider the appeal 'on merits.' The petitioner, a private company registered under the GST regime in Gujarat, faced a show cause notice dated 30.09.2023 alleging 'excess ITC claimed' in a delayed GSTR-3B. Despite explanations, substantial ITC was disallowed on 'timing and matching grounds,' culminating in a demand in Form DRC-07 dated 30.12.2023 for tax, interest, and penalty aggregating to Rs. 5,21,98,792/-. The statutory appeal under Section 107 was required within three months (up to 30.03.2024), but was filed on 17.04.2024 with an 18-day delay and was rejected on limitation. During hearing, the respondent authority stated the impugned order 'will be withdrawn' and that 'a fresh order will be passed after hearing the petitioner.' The Court directed issuance of a fresh order 'dealing with all the contentions' and 'after affording due opportunity of hearing,' to be completed within twelve weeks from receipt of the writ.