2024 (12) TMI 510 - HC - GST

Rejection of the petitioner's claim of ITC on the basis of the limitation stipulated under Section 16(4) of the GST Act - discrepancy between e-way bill and GSTR-3B - HELD THAT - The impugned order passed by the respondent dated 23.04.2024 is set aside and the petitioner shall deposit the entire tax due of Rs. 87,129/- on issues other than rejection of ITC invoking Section 16 (4) of the Act within a period of two (2) weeks from the date of receipt of a copy of this order. This Writ Petition is disposed of.

Summary

Issues:
1. Rejection of Input Tax Credit (ITC) based on Section 16(4) of the GST Act.
2. Discrepancies between GSTR-2A and GSTR-3B.
3. Discrepancies between e-way bill and GSTR-3B.

Detailed Analysis:

1. The primary issue in the present Writ Petition is the rejection of the petitioner's claim of ITC under Section 16(4) of the GST Act. The petitioner challenges the impugned order dated 23.04.2024 for the assessment year 2018-2019. The petitioner's counsel argues that an amendment has been made to the GST Act, specifically Section 16(5) inserted via Section 118 of the Finance (No. 2) Act, 2024. This new provision allows for the entitlement of input tax credit in certain cases. The counsel contends that due to this amendment, the reasons cited by the adjudicating authority for rejecting the ITC claim may no longer be valid, necessitating a reassessment by the respondent.

2. The respondent, represented by the Additional Government Pleader, agrees to re-do the assessment in light of the Finance (No. 2) Act, 2024. Additionally, the respondent addresses other issues raised, such as variances between GSTR-2A and GSTR-3B, as well as discrepancies between e-way bill and GSTR-3B. The tax implications of these discrepancies are quantified as Rs. 37,890 and Rs. 49,239, respectively, which constitute a small percentage of the total liability. The respondent proposes that the petitioner may file objections regarding these issues upon depositing the entire tax amount due, which the petitioner consents to.

3. Consequently, the High Court sets aside the impugned order dated 23.04.2024 and directs the petitioner to deposit the total tax amount due on issues other than the rejection of ITC within two weeks. Upon compliance, the impugned order will be treated as a show cause notice, allowing the petitioner to submit objections within three weeks. Any filed objections will be considered, and orders will be passed after providing a reasonable opportunity for a personal hearing. The Writ Petition is disposed of with no order as to costs, and connected miscellaneous petitions are closed.