B Braun Medical India Pvt Ltd Vs Union of India & Ors. (Delhi High Court)
Summary: The Delhi High Court ruled in favor of B Braun Medical India Pvt. Ltd. in a case concerning the denial of Input Tax Credit (ITC) due to an incorrect GST number on invoices. The petitioner, engaged in pharmaceutical sales, had purchased products from Ahlcon Parenterals (India) Ltd., but the invoices mistakenly mentioned its Bombay GSTN instead of the Delhi one. The tax authorities rejected the ITC claim based solely on this discrepancy. The court noted that the petitioner’s name was correctly mentioned, no other entity had claimed the ITC, and the error was made by the supplier. Given the substantial financial impact, the court allowed the correction and reinstated the ITC, while the petitioner agreed to withdraw its constitutional challenge. The judgment emphasizes that minor technical errors in GST documentation should not lead to unjustified denial of tax credits.
Facts:
M/s B Braun Medical India (P.) Ltd. (“the Petitioner”) was engaged in the sale of various pharmaceutical products and medical devices. The Petitioner had purchased a large quantum of products from M/s. Ahlcon Parenterals (India) Limited (“Ahlcon”) on the basis of various purchase orders.
