Bhagwan Das Agrahari Vs State of U.P. And 2 Others (Allahabad High Court)
In Bhagwan Das Agrahari vs. State of U.P. & Others, the petitioner challenged orders denying Input Tax Credit (ITC) under Section 73 of the UP GST Act. The dispute arose from the claim that ITC was wrongly availed due to missing GSTN details in supplier certificates. The petitioner argued that a government circular dated December 27, 2022, allows suppliers’ certificates as sufficient proof if transactions are below ₹5 lakhs. Despite providing the required documents, the authorities rejected the ITC claim, citing the absence of GSTN details. However, the petitioner contended that GSTNs were, in fact, included in the certificates.
The Allahabad High Court reviewed the case and found that the certificates met the requirements set by the government order. It ruled that the rejection of ITC on the sole ground of missing GSTN was not justified. The court set aside the impugned orders and remanded the case for reconsideration. The original authority was directed to reassess the claim, considering all submitted materials and issuing a fresh, reasoned order within three months. Any deposited amount would remain subject to the outcome of the new order. The writ petition was accordingly allowed.
