Golden Traders Vs Assistant State Tax Officer (Kerala High Court)
Kerala High Court, in a significant ruling in the case of Golden Traders Vs. Assistant State Tax Officer, has quashed a demand issued under Section 73 of the Central Goods & Services Tax Act, 2017 (CGST Act) for the assessment year 2017-2018. The petitioner, Golden Traders, a partnership firm dealing in plastic moulded chairs and watches, had challenged the demand, which stemmed from an alleged excess input tax credit (ITC) availment of Rs. 1,29,906. The firm contended that this discrepancy was merely a result of availing ITC under incorrect heads, not an ineligible claim.
The core of Golden Traders’ argument rested on a previous Division Bench judgment of the Kerala High Court in Rejimon Padickapparambil Alex v. Union of India [W.A.No.54 of 2024]. In that case, the court had meticulously examined a similar issue where a taxpayer had availed ITC as CGST and SGST instead of IGST. The Rejimon Padickapparambil Alex judgment, which extensively quoted an assessment order from the Assistant Commissioner of Central Tax, Bengaluru, highlighted that such discrepancies, where the eligibility of ITC is not disputed but merely its classification under wrong heads, should not lead to a demand for reversal under Section 73.
