Bharat Motors Limited Vs Chief Commissioner of CT & GST (Orissa High Court)
The writ petition challenged two orders passed under the Central Goods and Services Tax Act, 2017 and the Odisha Goods and Services Tax Act, 2017 for the financial year 2020–21: an adjudication order dated 27 February 2025 under Section 73 raising a demand of tax, interest, and penalty, and a rectification rejection order dated 1 September 2025 under Section 161. The dispute arose after an audit under Section 65, where proceedings were initiated on the allegation that the petitioner had claimed excess input tax credit (ITC) in GSTR-3B compared to GSTR-2A, allegedly due to non-reversal of ITC arising from supplier credit notes.
The adjudication order concluded that the petitioner failed to reverse ITC relating to credit notes and recorded that supporting documents were not produced. The petitioner thereafter filed an application for rectification on 29 March 2025, asserting that ITC had been claimed only to the extent available in GSTR-2A, that ITC corresponding to credit notes had already been reversed through net-off in GSTR-9, and that purchase registers, reconciliation statements, and credit note ledgers had been submitted and were available on the GST portal. It was further contended that the allegation of non-submission of original credit notes was never raised during adjudication and that the rejection was contrary to the material on record.
