2023 (1) TMI 141 - HC - GST

Maintainability of appeal - condonation of period beyond the statutory time period under section 107 of the GST Act - mismatch between GSTR 3B and GSTR 2A - HELD THAT - Considering the decision of the Hon ble Apex Court rendered in the case of UNION OF INDIA VERSUS BHARTI AIRTEL LTD. ORS. 2021 (11) TMI 109 - SUPREME COURT , where the Hon ble Apex Court has held that Form GSTR-2A is only a facilitator for taking an informed decision while doing self-assessment and also bearing in mind the personal circumstances of the petitioner, this court is allowing this petition permitting him to go to the appellate authority, which shall without taking an objection with regard to the limitation, decide this matter on merits. Let an amount of pre-deposit i.e. Rs.2,02,245/- be deposited by the petitioner within a period of two weeks. Once that amount is deposited, he will be entitled to make a request for the release of his bank account, before the appellate authority immediately, which shall be decided within one week.

Summary

Issues:
1. Quashing of order dated 07/04/2022 under section 73 of the Act regarding ITC mismatch between GSTR 2A and GSTR 3B.
2. Excess ITC claim leading to demand of Rs.31,95,464/- consisting of tax, interest, and penalty.
3. Delay in filing appeal due to personal reasons.
4. Provisional attachment order challenged.
5. Legal interpretation of Form GSTR 2A as a facilitator for self-assessment.
6. Permission to approach appellate authority beyond the statutory time period.

Analysis:
1. The petitioner sought to quash the order dated 07/04/2022 under section 73 of the Act due to a mismatch between GSTR 2A and GSTR 3B regarding Input Tax Credit (ITC). The demand raised was Rs.31,95,464/-, comprising tax, interest, and penalty, based on this discrepancy.

2. The petitioner, a construction company registered under the GGST/CGST Act, faced the issue of excess ITC claim for the year 2019-2020 due to suppliers not filing returns. Despite purchasing goods and making payments, the ITC reflected in GSTR 2A did not match with GSTR 3B, leading to the demand notice.

3. The petitioner faced a delay in filing an appeal within the stipulated three months under section 107 of the Act due to personal hardships, including the passing of a family member and another family member's illness. This delay necessitated seeking relief under Article 226 of the Constitution of India.

4. The challenge extended to the provisional attachment order issued in October 2022, with the petitioner emphasizing the necessity to question this order as no other efficacious remedy was available after missing the appeal filing deadline.

5. The legal interpretation of Form GSTR 2A as a facilitator for self-assessment was crucial in the judgment. Citing the decision in Union of India vs. Bharti Airtel Ltd. & Ors., the petitioner argued that the form is a tool for decision-making, not conclusive evidence, requiring further presentation of the case to the concerned officer.

6. Considering the legal precedents and the personal circumstances of the petitioner, the court allowed the petition, enabling the petitioner to approach the appellate authority beyond the statutory time limit. A pre-deposit amount of Rs.2,02,245/- was mandated for further proceedings, emphasizing a fair consideration of the case on its merits.

This detailed analysis covers the key issues raised in the legal judgment, highlighting the complexities of the case and the court's decision in addressing each concern raised by the petitioner.