Binding precedent on input tax credit adjustment led to quashing of the GST assessment order.

Assessment based on alleged mistaken adjustment of input tax credit between IGST and CGST/SGST heads was set aside because the issue was already covered by an earlier Division Bench ruling in the petitioner's favour. The Court treated that binding precedent as controlling the present dispute and held that the demand-based order could not survive. The impugned assessment order was quashed and relief was granted to the petitioner, while the State was left free to pursue any inter-departmental settlement issues through the GST Council.

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Issues: Whether the assessment order passed under Section 73 of the Kerala State Goods and Services Tax Act, 2017, on the basis of alleged mistaken adjustment of input tax credit between IGST and CGST/SGST heads, was sustainable in view of the earlier Division Bench decision.

Analysis: The petitioner's challenge to the assessment was accepted on the ground that the controversy stood covered by an earlier Division Bench ruling of the Court in favour of the petitioner. The Court treated that decision as governing the present dispute and proceeded to grant relief accordingly.

Conclusion: The impugned assessment order was quashed, and the writ petition was disposed of in favour of the petitioner.

Final Conclusion: The demand-based order could not survive in light of the binding earlier decision, though the State was left at liberty to seek resolution of inter-departmental settlement issues through the GST Council.

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