TaxTMI 
TaxTMI 
2026 (6) TMI 1091
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....the provisions of law. ii) To Issue order(s), direction(s), writ(s) or any other relief(s) as this Hon'ble Court deems fit and proper in the facts and circumstances of the case and in the interest of justice. iii) To award cost of this petition iv) Pass any other order or give any other direction as this Hon'ble Court deems fit and appropriate in the circumstances of the case." 2. A perusal of the material on record will indicate that in pursuance of the audit observations, audit notices, audit proceedings and correspondence between the petitioner and the respondent for the Financial Year/Tax Period 2018-19, the respondent issued pre-intimation in Form GST DRC 01A dated 06.12.2023 calling upon the petitioner to pay a sum of Rs.1,15,15,27,040/- together with applicable interest under Section 73(5) of the CGST/KGST Act, 2017. The petitioner having submitted a reply dated 14.12.2023, the respondent issued a Show Cause Notice (SCN) dated 29.12.2023 under Section 73(1) of the CGST/KGST Act calling upon the petitioner to pay a sum of Rs.90,82,01,601/- together with interest and penalty. The petitioner submitted a detailed reply dated 29.01.2024 and a....
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....hority for reconsideration afresh and in accordance with law. 5. Per contra, learned HCGP for the respondents would reiterate the various contentions urged in the statement of objections and submits that there is no merit in the petition and the same is liable to be dismissed. 6. I have given my anxious consideration to the rival submissions and perused the material on record. 7. A perusal of the material on record will indicate that as noticed above, the respondents have answered Issue No.2 relating to alleged wrong availment of utilization of excess ITC due to incorrect ITC claimed in GSTR - 3B vis-à-vis as available in GSTR-2A and thereby confirmed the demand of Rs.20,00,82,381/- together with interest and penalty and called upon the petitioner to pay a total sum of Rs.41,21,69,705/- in this regard by holding as under: "2. ITC VERIFICATION. Wrong availment and utilization of Excess Input tax credit of Rs.20,00,82,381/ due to the incorrect ITC CLAIMED In 3B VIS-A-VIS as available in GSTR-2A: Audit's detection: During the course of Audit on verification of the inward supply register, input tax claimed and availed details in GSTR-3B VI....
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....RC-01A. Accordingly, the contention of the RTP cannot be considered and the RTP is advised to pay the same. Hence, a demand of Rs.20,00,82,381/- is proposed along with interest of Rs. 19,20,79,085/- and penalty of Rs.2,00,08,238/- • At the outset we would like to reiterate our submissions in the below paragraphs and also we are attaching - Details of imports, procurements made from SEZ along with copies of Bill of Entry as Annexure - 13 - Copy of the notice and our reply to ASMT-10 as Annexure-14 • We understand that your goodself has arrived at this observation by comparing the ITC as reported in GSTR 30 under Table 4(A)(5) with ITC as appearing in GSTR 2A. • The reconciliation of ITC values reported is as follows: S. No. Particulars ITC(Rs.) A As per GSTR 3B - All Other ITC 72,66,13,590 B Less: i. Import of goods ITC disclosed in All other ITC in GSTR 3B of Jul'18 7,73,73,105 ii. Input tax credit on procurements made from SEZ units wrongly considered under All Other ITC in GSTR 38 13,68,11,797 C Net c....
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....R-9 is not a return for the purpose of availing input tax credit and any missed out input tax credit, has to be claimed as per Sec 16(4) within the permitted time, that is by October-20th of 2019. Any claim of input tax credit not put forth in the GSTR- 3B return in the applicable columns cannot be claimed later in the GSTR-9 submitted on 30-12-2020. Further, the Noticee has claimed in the specific box No.4A(1) of GSTR 3B an input tax credit relating to import of goods of Rs.66.88 Crores and now claiming the same by reporting through GSTR-9 is not as per law. The Noticee claims that, the LGSTO has issued ASMT-10 regarding the same issue and the Noticee has replied and has ask the undersigned to drop the issue. But it can be observed that the Noticee has not submitted ASMT- 12 as per Rule-99(3) of KGST rules, which is usually issued by the proper officer, if the reply submitted is acceptable. Hence, just because an ASMT-10 has been issued, the Act of belatedly claiming the input tax credit through GSTR-9 cannot be accepted. Hence based on the above discussion the Noticee is advised to pay back the wrongly claimed input tax credit along with the applicable ....
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....mport of goods and there is no requirement of matching with GSTR-2A as Section 16(2)(aa) is introduced w.e.f., 01.01.2022. Under these circumstances, I am of the considered opinion that that the reasoning and findings recorded by the respondent in relation to Issue No.2 pertaining to allegations of wrong availment and utilization of excess Input Tax Credit (ITC) of Rs.20,00,82,381/- due to incorrect ITC claimed in GSTR-3B vis-à-vis as available in GSTR-2A are erroneous and contrary to the material on record and the same deserve to be quashed. 10. Insofar as the impugned order containing the reasoning and findings on remaining issues recorded against the petitioner are concerned viz., non-payment of GST on corporate guarantee, liability to pay tax on cross-charges received towards facilities and other expenses, ITC with regard to promotion expenses held to be ineligible as per Sections 16 and 17 of the CGST/KGST Act, denial of reduced rate of tax at 0.1% for merchant exports, wrong claim of refund on export in Invoice Value instead of Shipping Bill resulting in excess refund, liability to pay under Reverse Charge Mechanism (RCM) for import of services and ITC with respect ....