2025 (6) TMI 1257

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....fficer under Section 73 of the said Act for the tax period of July, 2017 to March 2018, the instant writ petition has been filed. 2. The petitioners' case proceeds on the premise that the petitioners are engaged in business of manufacturer of poultry feed under CTH of the Customs Tariff Act, 1985 (hereinafter referred to as the Tariff Act). Following a scrutiny of the returns of the petitioners under Section 61 of the said Act, a notice in form GST ASMT 10 dated 21st July, 2022 was issued identifying certain discrepancies. The petitioners had duly responded by the same by filing a response in form GST ASMT 11 and had clarified therein that although, the petitioners had wrongly availed the input tax credit (ITC) by filing returns under Se....

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....ough effected, was shown in respect of the tax period 2018-2019, 2019-2020 and 2021-2022. According to him, since the sale of poultry feed by the petitioners does not attract levy of tax, the petitioners could not have either availed or utilized ITC. 5. Admittedly, the petitioners have never utilized the ITC which had been wrongly availed by the petitioners while filing its returns under Section 39 of the said Act. When the aforesaid discrepancy came to light with the intervention of the anti evasion wing of the CGST authorities, the petitioners had forthwith reversed the ITC. Though while doing so, the petitioners did not indicate in the DRC 03 forms that the reversal was also in respect of the financial year 2017-2018. 6. According ....

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.... the proper officer (adjudicating authority) as also the appellate authority has acknowledged such aspect and despite observing that the ITC had been reversed voluntarily by the petitioners by filing Form GST DRC 03, the benefit thereof has not been extended to the petitioners citing technical grounds. As rightly pointed out by Mr. Kanodia, by placing reliance on the judgment delivered in the case of Rajesh Real Estate Developers Private Limited vs. Union of India, reported in 2024 (16) Centax 156, (Bom.), that the inadvertent error in Form GST DRC 03 can be permitted to be corrected. Similar view has also been taken by the High Court of Kerala at Ernakulam in the case of Lotus Pharmaceuticals vs. the Assistant State Tax Officers & Ors., re....