Vasavi Agencies Vs Assistant Commissioner – Central Tax (Andhra Pradesh High Court)
In a recent ruling, the Andhra Pradesh High Court dealt with a petition filed by Vasavi Agencies concerning their entitlement to Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime. The petition raised multiple grievances regarding the actions taken by the Assistant Commissioner, Central Tax, in denying rectification requests and passing orders without proper service of documents. Specifically, the petitioner contested the denial of a rectification application and the demand for input tax on IGST, asserting that it was contrary to the provisions of the IGST Act and CGST Act. They also challenged the retrospective amendment made to Rule 61 of the APGST Rules, which they argued violated constitutional rights.
The petitioner sought several reliefs, including the annulment of orders passed by the Assistant Commissioner, particularly the GST DRC-07 and the Order-in-Original No. 30/2023, which confirmed the demand of input tax. The petitioner argued that these orders were illegal, arbitrary, and in violation of principles of natural justice. Additionally, they questioned the restriction of input tax credit under Section 16(4) of the CGST Act, which they contended was contrary to constitutional provisions.
In response, the High Court considered the arguments put forth by the petitioner and the respondents. The respondents did not dispute that the petitioner was entitled to ITC under Circular No. 237/31/2024-GST, provided the necessary conditions and procedures were followed. The court ruled in favor of the petitioner, confirming their entitlement to ITC as per the circular, while also acknowledging that any further cause could be raised before the court if necessary.
