Assessee permitted to file a rectification petition in case where credit was availed under wrong head

[CA Bimal Jain]

The Hon’ble Madras High Court in the case of TVL. THENDRAL ELECTRICALS, REPRESENTED BY ITS PROPRIETOR, K. JEYAKUMAR. VERSUS THE COMMISSIONER OF COMMERCIAL TAXES, THE DEPUTY STATE TAX OFFICER-1, DINDIGUL - 2024 (9) TMI 1472 - MADRAS HIGH COURT directed the Assessee to file the petition for rectification and make representation before the Department in case where the tax was availed under the wrong head i.e. credit of IGST availed in CGST and SGST due to clerical error.

Facts:

Tvl. Thendral Electricals (“the Petitioner”) filed a writ petition against order dated September 13, 2023 (“the Impugned Order”) passed under Section 73 of the Tamil Nadu Goods and Services Tax Act, 2017 (“the TNGST Act”) on the ground the Impugned Order is prima facie erroneous.

The Petitioner submitted that they were ineligible to avail Input Tax Credit (“ITC”) under the head IGST which was duly reflected in Form GSTR-2A, auto populated as per sales reported by the Petitioner supplier. The Petitioner was required to claim ITC by entering the said value in Column 4A(1)(2) of monthly return in Form GSTR-3B under the head “Integrated Tax”. However, inadvertently, the Petitioner while filing the monthly return has entered the above ITC in column 4(A)(1)(3) and 4A(1)(4) by bifurcating the said value under the head Central Tax and State Tax. The Impugned Order was passed against the Petitioner based on the aforesaid error which was merely clerical in nature.

Issue:

Whether Credit should be denied when the amount of credit filled under wrong head of tax?

Held:

The Hon’ble Madras High Court in the case of TVL. THENDRAL ELECTRICALS, REPRESENTED BY ITS PROPRIETOR, K. JEYAKUMAR. VERSUS THE COMMISSIONER OF COMMERCIAL TAXES, THE DEPUTY STATE TAX OFFICER-1, DINDIGUL - 2024 (9) TMI 1472 - MADRAS HIGH COURT based on the submissions made by the Department, directed the Petitioner to file the petition of rectification of Impugned Order and the same would be considered by the Department and orders would be passed accordingly. 

Our Comments:

The Hon’ble Kerala High Court in the case of CHUKKATH KRISHNAN PRAVEEN VERSUS STATE OF KERALA, DEPUTY COMMISSIONER, OFFICE OF THE DEPUTY COMMISSIONER, TAX PAYER SERVICES DIVISION - WADAKKANCHERY, STATE GOODS AND SERVICE TAX DEPARTMENT, POOTHOLE, THRISSUR, STATE TAX OFFICER, ASSISTANT STATE TAX OFFICER, CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS - 2023 (12) TMI 513 - KERALA HIGH COURT permitted the Assessee to rectify the error in Form GSTR-3B in case where the ITC relating to CGST and SGST was wrong availed as IGST.

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