Case Law Details
Kochi Medicals Vs State Tax Officer (Kerala High court)
The Kerala High Court recently adjudicated a significant case involving Kochi Medicals and the State Tax Officer, centering on the Goods and Services Tax (GST) regime. This detailed article delves into the case’s intricacies, the arguments presented by both sides, the legal framework, and the Court’s decision to remit the matter back to the assessing authority.
Background: Kochi Medicals, a registered dealer under the CGST/SGST Act, 2017, found itself embroiled in a dispute over the claim of input tax credit (ITC) for the period from July 2017 to March 2018. The crux of the dispute was a mismatch between the GSTR – 3B filed by the petitioner and the GSTR – 2A, leading to the disallowance of ITC to the extent of the mismatch by the assessing authority.
Legal Arguments: The petitioner’s counsel highlighted the initial challenges faced by dealers in adapting to the GST system and argued for leniency based on Circular No. 183/15/2022-GST dated 27.12.2022. This circular provided relaxation for the financial years 2017-18 and 2018-19, specifically addressing issues of unreflected supplies in GSTR – 2A due to misreporting by suppliers.
Court’s Decision: The Kerala High Court, acknowledging the arguments and the provisions of the circular, set aside the previous orders that had dismissed the petitioner’s appeal. The matter was remanded back to the assessing authority to reconsider the petitioner’s case in light of the recent circular, with instructions to afford the petitioner a personal hearing for a fresh assessment.
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