Quashes confirmation of demand despite reversal of wrongly availed ITC in GSTR-3B : Madras HC

 

The petitioner states that he had purchased a car in the assessment year 2021-2022. Since he had wrongly availed of Input Tax Credit (ITC) in relation thereto, it is stated that such ITC was reversed in the GSTR 3B return filed subsequently. In spite of such reversal, it is stated that the impugned order was issued.

The petitioner’s counsel highlighted the reversal of Rs. 73,690 each towards CGST and SGST in the GSTR 3B return, along with a further debit of Rs. 71,706 from the petitioner’s electronic credit ledger post the impugned order. Mr. K.Vasanthamala, learned Government Advocate, accepts notice for the respondent and further points out that the impugned order was issued in view of the respondent not being aware of the reversal in the GSTR 3B return.

Acknowledging the petitioner’s submission, the court observed discrepancies between the impugned order and the documented reversal of ITC. Consequently, the court quashed the order and remanded the matter for reconsideration. The petitioner was granted an opportunity to respond to the show-cause notice dated 19.04.2023 and submit relevant documents within two weeks.