Case Law Details
Malik Traders Vs Union Territory of J & K & Ors. (Jammu & Kashmir and Ladakh High Court)
Introduction: Malik Traders have approached the Jammu & Kashmir and Ladakh High Court seeking redressal against the Order dated 08.12.2023. The appellate authority had rejected the petitioner’s appeal, contending that the Principal Supplier failed to upload bills during the relevant period. The petitioner, however, claims that the bills were uploaded in GSTR, Form A in B2C, but discrepancies in the portal of the State GST authorities led to the rejection. This article delves into the details of the case and the court’s directive for a reconsideration.
Background: The petitioner, dissatisfied with the appellate authority’s decision, filed the present petition challenging the rejection of their Input Tax Credit (ITC) claim. The key contention was the failure of the Principal Supplier to upload bills during the period under appeal, as per the GST Act 2017.
Legal Proceedings: Ms. Yasmeen and Ms. Zareen Ali, learned counsel for the petitioner, argued that the bills were indeed uploaded in GSTR, Form A in B2C. However, a discrepancy in the portal of the State GST authorities resulted in the non-reflection of the uploaded bills, leading to the adverse observations by the appellate authority.
Court’s Observations: The court, after hearing the arguments, agreed that the matter involves the ascertainment of facts. Rather than exercising jurisdiction under Article 226 of the Constitution of India, the court deemed it more appropriate to direct the appellate authority to re-examine the issue.
Disposition of the Petition: The court disposed of the petition with the following directives:
- The petitioner is directed to approach the Appellate Authority within two weeks.
- The Appellate Authority will reconsider the petitioner’s claim for availing benefits, including ITC.
- The Appellate Authority will issue a Speaking Order after providing an opportunity for the petitioner to be heard.
- The reconsideration process should be conducted expeditiously.
Conclusion: Malik Traders have secured a directive from the Jammu & Kashmir and Ladakh High Court for the reconsideration of their ITC claim. The court’s emphasis on providing an opportunity for the petitioner to present evidence before the Appellate Authority reflects a commitment to fair adjudication in matters involving factual complexities.
FULL TEXT OF THE JUDGMENT/ORDER OF JAMMU & KASHMIR AND LADAKH HIGH COURT
The present Petition has been filed against the Order dated 08.12.2023 by which the appellate authority rejected the appeal preferred by the petitioner, having observed that the Principal Supplier of the present petition had failed to upload the bills during the period under appeal, though the petitioner-appellant claimed ITC during that period which is not permissible as per the provision of the GST Act 2017. The appellate authority further observed that the petitioner-appellant failed to prove that his ITC claim as justified or genuine, nor he could submit any documentary evidence in his favour and, as such, failed the test of law, and, accordingly rejected the claim of the appellant for ITC.
Heard Ms. Yasmeen and Ms. Zareen Ali, learned counsel for the petitioner, and also Mr. Sajad Ashraf, learned GA for the respondents.
Ms. Yasmeen Wani, and Ms Zareen Ali, learned counsel for the petitioner submit that it is not the fact that the Principal Supplier had not uploaded the bills. In fact, it was uploaded in GSTR, Form A in B2C, which, unfortunately, had not been reflected in the portal of the State GST authorities because of which, the learned appellate authority made the aforesaid observations.
It has been submitted by the learned counsel for the petitioner that the petitioner shall be satisfied if this petition is disposed of with the direction to the respondents to reconsider the matter and pass appropriate orders after providing opportunity to the petitioner of being heard.
We are also of the view that rather than this Court exercising jurisdiction under Article 226 of Constitution of India, to examine this issue which involves the ascertainment of facts, it would be more appropriate to direct the appellate authority to re-examine the same for which the petitioner may file the necessary documents and explain before the appellate authority that the Principal Supplier had indeed uploaded the bills showing payment of GST so that the petitioner-appellant can claim ITC and other benefits under the law.
Accordingly, with the above observation, the petition is disposed of.
The petitioner is directed to approach the Appellate authority within a period of two weeks and the Appellate Authority will reconsider the claim of the petitioner/appellant for availing benefits including ITC, for which the Appellate Authority will issue a Speaking Order after hearing the petitioner as expeditiously as possible.
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