Denial of ITC due to GSTR 2A mismatch- High Court stays order
|
Case Details: |
Bharat Aluminium Company Limited vs. Union of India and ors. |
|
Appeal No.: |
WPT No. 94 of 2021 |
|
Order pronounced by: |
Chhattisgarh High Court |
|
Date of Order: |
24-06-2021 |
Brief Facts:
- Learned counsel for the petitioner submitted that the notice was served on petitioner vide Annexure P-1 dated 01-07-2020 wherein an ITC as claimed by the petitioner was Rs. 95,464.59 Lakhs and GSTR 2A was Rs. 86,606.67 Lakhs.
- He submitted that the difference of tax Rs. 8857.91 lakhs has been claimed along with interest. He submitted that as per the Press Release of GST Council dated 4th May 2018, there shall not be any automatic reversal of ITC of buyer on non-payment of tax by the seller.
- It is submitted that in case the seller has not paid the tax, a recovery has to be made from the seller. It is stated that for the recovery from the buyer, the action can only be available in exceptional circumstances.
- Relying on decision of Madras High Court in M/s D.Y. Beathel Enterprises vs. State Tax Officer [W.P. (MD) No. 2127 of 2021] submitted that it has been held if the default is made by non-payment of tax by the seller, the recovery shall be made from the seller and only in exceptional circumstances, it can be from the recipient, therefore, the ITC which was claimed by the petitioner cannot be denied for the reason that the seller has not uploaded their invoices on time.
High Court Order:
A perusal of the notice and recovery order dated 22.01.2021 would show that the issue raised by the petitioner needs consideration. The petition is admitted for hearing. Let the reply be filed within four weeks.
It is directed that on petitioner’s depositing 5% amount of Rs. 14,93,79,211/- demanded within a period of 15 days, no coercive steps shall be taken pursuant to the said order.
