No Reversal Of ITC Due To Belated ITC Claim Beyond Time Prescribed u/s 16(4), When Form GSTR-2 Is Not Notified

Last updated: 26 December 2023

Court :
Madras High Court

Brief :
This Court is inclined to quash the impugned orders and accordingly the impugned orders are quashed. The respondents shall permit the petitioner to file manual returns whenever the petitioner is claiming ITC on the outward supply / sales without paying taxes. Further the respondents are directed accept the belated returns and if the returns are otherwise in order and accordance to law, the claim of ITC may be allowed. Hence, the matter is remitted back to the authorities for reconsideration.

Citation :
W.P.(MD).Nos.7173 and 7174 of 2023 and W.M.P.(MD)Nos.6764 and 6765 of 202

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
RESERVED ON : 29.09.2023
PRONOUNCED ON :24.11.2023
CORAM
THE HONOURABLE MRS.JUSTICE S.SRIMATHY
W.P.(MD).Nos.7173 and 7174 of 2023
and
W.M.P.(MD)Nos.6764 and 6765 of 2023
Tvl.Kavin HP Gas Gramin Vitrak,
represented by Proprietor Palaniyandi Arun,
No.112, 113, N.A., Cheran Complex,
Bank Road, Uranganpatty,
Madurai – 625 109. ... Petitioner in both cases
Vs.
1.The Commissioner of Commercial Taxes,
Office of the Principal and Special
Commissioner of Commercial Taxes,
Ezhilagam, Chepauk,
Chennai-600 005.
2.The Deputy State Tax Officer-1,
Office of State Tax Officer,
Melur Assessment Circle,
CT Building, Dr.Thangaraj Salai,
Madurai-20. ... Respondents in both cases

Prayer in W.P.(MD)No.7173 of 2023: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari, to call for records pertaining to the impugned proceedings of the 2nd respondent in GSTIN.33BAGPA0449A1ZM/2017-18, dated 16.08.2022 and to quash the same as illegal and devoid of merits.

Prayer in W.P.(MD)No.7174 of 2023: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari, to call for records pertaining to the impugned proceedings of the 2nd respondent in GSTIN.33BAGPA0449A1ZM/2018-19, dated 16.08.2022 and to quash the same as illegal and devoid of merits.

In both cases:
For Petitioner: Mr.Raja Karthikeyan
For Respondents : Mr.A.K.Manikkam
Special Government Pleader

COMMON ORDER

These writ petitions are filed for writ of Certiorari to quash the impugned orders, dated 16.08.2022. The writ petition in W.P.(MD)No.7173 of 2023 is filed for the financial year 2017-2018 and W.P.(MD)No.7174 of 2023 is filed for the financial year 2018-2019.

2. The petitioner is doing business related to Petroleum Gases and other Gaseous Hydrocarbons in Urangampatty and registered with the respondent department in GSTIN.33BAGPA0449A1ZM and was promptly filing monthly returns. Based on the scrutiny and verification of GSTR-3B returns filed in W.P.(MD).Nos.7173 and 7174 of 2023 financial year 2017-2018 and 2018-2019, the 2nd respondent issued notice dated 27.04.2022 and directed the petitioner to show cause why there was a belated claim of Input Tax Credit (ITC) and also directed to remit back the same as wrong claim of ITC and proposed to reverse the same. Further it is alleged that the petitioner had claimed on the purchase of Petroleum product. The petitioner submitted that due to financial crisis the petitioner had submitted GSTR-3B physically and the same was already explained to the respondents in person through his Accountant and hence the allegation by the respondents that the said claim is false cannot be accepted.

To read the full judgment, find the enclosed file