2025 (2) TMI 173 - HC - GST

Initiation of proceedings under Section 73 of UP GST Act - wrong availment of input tax credit - HELD THAT - It is not in dispute that the certificates have been filed as per Government Order dated 27.12.2022 and copies of the same have been annexed along with the writ petition which has not been denied. Once the certificate as per the Government Order was there which has not been denied the benefit of the same has been denied on the alleged ground that GSTN have not been mentioned in the certificates. However on perusal of the certificates annexed along with the writ petition it appears that GSTN have specifically been mentioned therein. In such circumstances the matter requires reconsideration by the respondent authority. The matter is remanded to the original authority who after considering all the materials filed by the petitioner as well as after hearing all the stake holders shall pass reasoned and speaking order within a period of three months from the date of production of certified copy of this order. Petition allowed by way of remand.

Summary

In the case before the Allahabad High Court, presided over by Hon'ble Piyush Agrawal, J., the petitioner challenged orders dated 1.5.2024 and 14.3.2023 concerning proceedings under Section 73 of the UP GST Act for alleged wrongful availment of input tax credit (ITC). The petitioner argued that the proceedings and the subsequent dismissal of an appeal failed to consider material evidence, specifically certificates from suppliers indicating compliance with a circular dated 27.12.2022. This circular stated that for supplies less than 5 lakhs, a supplier's certificate suffices to clarify the position.The respondent authority denied ITC benefits, citing the absence of GSTN in the certificates, despite their presence in the documents submitted by the petitioner. The court found that the certificates complied with the Government Order and noted the presence of GSTN, contrary to the respondent's claim. Consequently, the court set aside the impugned orders and remanded the matter to the original authority for reconsideration, instructing it to issue a reasoned and speaking order within three months. Any amount deposited by the petitioner will be contingent on the outcome of the fresh order. The writ petition was allowed, and the petitioner was directed to serve a certified copy of the order to the competent authority within ten days.