Makhan Lal Sarkar And Anr. Vs Assistant Commissioner of Revenue (Calcutta High Court)
The Hon’ble Calcutta High Court in M/s. Makhan Lal Sarkar and anrs. vs. the Assistant Commissioner of Revenue, State Tax B.I. and Ors. [WPA/2146/2023 dated September 18, 2023] directed the Revenue Department to hear the appeal afresh as the benefit of Input Tax Credit (“ITC”) was denied due to a mismatch of ITC claimed in Form GSTR-3B and that reflected in Form GSTR-2A in accordance with Circular No. 183/15/2022-GST dated December 27, 2022.
Facts:
M/s. Makhan Lal Sarkar (“the Petitioner”) is a registered partnership firm engaged in the business of Bidi Leaves. During the Financial Year 2017-2018, the Petitioner purchased Bidi leaves from numerous suppliers. In January 2021, a physical inspection was conducted at the premises of the Petitioner. Thereafter, the proceeding under Section 73 of the Central Goods and Service Tax Act, 2017 (“the CGST Act”) was initiated against the Petitioner. A show cause notice (“the SCN”) dated August 04, 2021 was served on to the Petitioner. The Petitioner’s claim for the benefit of ITC was rejected and was directed to pay penalty along with interest under Section 73 of the CGST Act vide order dated June 07, 2022 (“the Adjudicating Order”).
Aggrieved by the Adjudicating Order, the Petitioner preferred an appeal, but the Petitioner did not appear despite numerous opportunities granted by the Revenue Department (“the Respondent”). The Respondent vide order dated June 28, 2023 (“the Impugned Order”), dismissed the appeal and upheld the order passed by the adjudicating authority under Section 73 of the CGST Act due to a mismatch of ITC claimed in Form GSTR-3B and that reflected in Form GSTR-2A.
Aggrieved by the Impugned Order, the Petitioner filed the writ petition challenging the Impugned Order.
Issue:
Whether the denial of an ITC mismatch claim in GSTR-3B and GSTR-2A be justified when the conditions outlined in Circular No. 183/15/2022-GST are not taken into account?
Held:
The Hon’ble Calcutta High Court in WPA/2146/2023, held as under:
