Case Law Details
Tikona Infinet Private Limited Vs State of U.P. and Another (Allahabad High Court)
In this article, we examine the case of Tikona Infinet Private Limited Vs State of U.P. and Another, as adjudicated by the Allahabad High Court. The case centres around the legitimacy of certain adjustments made by the assessee, Tikona Infinet, due to the non-availability of a relevant form on the GST portal.
The court deliberated on Tikona Infinet’s adjustment of input tax credit (ITC) using Form GST-33 instead of the required GST ITC-02, a deviation the company justified due to the latter form’s unavailability on the GST portal. The ITC, amounting to Rs.3,13,68,9997/-, had been transferred from M/s Tikona Digital Network Pvt. Ltd to Tikona Infinet during a business transfer.
The Allahabad High Court found that the company had made an illegal adjustment due to the lack of GST ITC-02 on the portal and stated that an excuse of a working capital shortage cannot bypass the legal procedure. However, the Court also noted that the GST portal was not online during the relevant period and thus set aside the order dated 17.04.2023, granting liberty to the respondent to pass a fresh order after considering the objections of the petitioner.
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