Case Law Details
Mina Bazar Vs State Tax Officer-1 (Kerala High Court)
In a significant ruling, the Kerala High Court, in the case of Mina Bazar vs. State Tax Officer-1, has underscored that Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime cannot be denied solely based on discrepancies between GSTR 2A and GSTR 3B. This judgment has far-reaching implications for businesses and tax authorities, as it clarifies the criteria for availing ITC and sets a precedent for similar cases.
1. The Basis of the Writ Petition: The writ petition challenges the assessment order (Ext.P1) and the subsequent recovery notice (Ext.P2) issued on August 20, 2022, and July 24, 2023, respectively.
2. The Grounds for Denial of ITC: The assessment order reveals that the primary reason for denying the petitioner’s claim for Input Tax Credit was the mismatch between GSTR 2A and GSTR 3B.
3. Precedent from Diya Agencies Case: The Kerala High Court referred to its earlier judgment in Diya Agencies vs. State Tax Officer, where it examined the denial of ITC based on GSTR discrepancies. The court cited the Supreme Court’s decision in the case of The State of Karnataka vs. M/s Ecom Gill Coffee Trading Private Limited and a Calcutta High Court judgment in Sun craft Energy Private Limited vs. The Assistant Commissioner, State Tax, Ballygunge Charge.
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