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2024 (3) TMI 967 - HC - GSTReversal of ITC - wrongful availment of Input Tax Credit (ITC) on purchase of Car - impugned order was issued in view of the respondent not being aware of the reversal in the GSTR 3B return - HELD THAT - The petitioner has placed on record the GSTR 3B return for the month of April in the assessment year 2023-2024. Such return indicates the reversal of ITC to the extent of Rs. 73,690/- each towards CGST and SGST. On examining the impugned order, it is evident that such impugned order proceeds on the basis that ITC of Rs. 73,690/- each towards CGST and SGST was wrongly availed of. In other words, the said order proceeds on the basis that ITC was not reversed. In light of documents placed on record by the petitioner, the said order requires reconsideration. The impugned order dated 11.07.2023 is quashed and the matter is remanded for reconsideration. The petitioner is permitted to file a reply to the show cause notice dated 19.04.2023 and to submit all relevant documents along with such reply. Petition disposed off by way of remand.
Issues: Challenge to an order dated 11.07.2023 regarding Input Tax Credit (ITC) reversal in GSTR 3B return for the assessment year 2021-2022.
The petitioner had purchased a car and wrongly availed ITC, which was subsequently reversed in the GSTR 3B return. Despite the reversal, the impugned order was issued. The petitioner pointed out the reversal amounts in the return and subsequent debits from the electronic credit ledger. The respondent, unaware of the reversal, issued the impugned order based on the assumption that ITC was not reversed. The High Court examined the documents provided by the petitioner, which clearly showed the reversal of ITC in the GSTR 3B return. The impugned order incorrectly proceeded on the basis that ITC was not reversed, necessitating reconsideration of the matter. Consequently, the court quashed the order dated 11.07.2023 and remanded the case for reconsideration. The petitioner was granted permission to file a reply to the show cause notice and submit all relevant documents within two weeks. The assessing officer was directed to provide a reasonable opportunity to the petitioner, including a personal hearing, and issue a fresh assessment order within two months from the date of receiving the petitioner's reply. The writ petition was disposed of with no costs, and connected miscellaneous petitions were closed.
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