Kondamma Trading Vs Assistant Commissioner of CGST & Central Excise (Madras High Court)
The Madras High Court considered a writ petition filed by Kondamma Trading challenging the respondent’s order and seeking permission to rectify GST returns filed for November 2018, December 2018, February 2019, April 2019, May 2019 and July 2019. The petitioner submitted that its books of account had been audited by the Officers of GST Audit I Commissionerate, Chennai, for the period from July 2017 to March 2020 during June 2022. Following the audit, the respondent issued a show cause notice dated 22.07.2022 concerning incorrect availment of input tax credit under different tax heads. The petitioner had availed IGST credit of Rs.6,99,220/- instead of CGST and SGST credit on the strength of invoices issued by suppliers from April 2019 to March 2020. Similarly, CGST credit of Rs.8,48,773/- and SGST credit of Rs.8,48,773/- had been availed instead of IGST credit on the strength of supplier invoices for the same period. The petitioner therefore sought to shift the ITC already claimed from one head to another, but the request was rejected by the respondent.
The respondent contended that the petitioner had a remedy under Section 161 of the GST Act by filing a rectification application. Since no such application had been filed, the Department had rejected the petitioner’s request. It was further submitted that, upon filing the rectification application, the respondent would consider the matter and, if the credit had genuinely been availed under the wrong head, could reverse it by changing the credit from one head to another.
