Delhi HC allows ITC Despite Wrong GSTN
Delhi HC Permits ITC Despite Wrong GSTN; Quashes Rs. 5.65 Cr Demand in M/s B Braun Medical India Pvt Ltd vs Union of India [W.P.(C) 114/2025 & CM APPL. 434/2025; dated 12-Mar-2025]. Delhi HC has held that the minor invoice errors do not automatically invalidate ITC. It held that substantive compliance overrides small procedural lapses. The Court prioritises fairness where no double credit is claimed.
Let us have a Short Overview of the case:
Facts of the case:
The Assessee purchased medical products from a supplier between 2017–2021.
On 28 June 2024, the Department passed an Order-in-Original raising a tax demand, alleging wrongful Input Tax Credit.
The supplier’s invoices mistakenly mentioned the Assessee’s Bombay GST number instead of the Delhi GST number.
Issue before the HC was whether a clerical error in the GST number on invoices disqualifies the Assessee from claiming ITC under the GST regime.
Ground of Appeal by the Assessee:
The Assessee contended that the incorrect GSTIN was a minor error and maintained that it is a duly registered entity in Delhi, thus should be entitled to claim the ITC.
Department’s argument:
The Department argued that the incorrect GSTIN on invoices disqualified the Assessee from availing the ITC, stressing the importance of accurate registration details.
Court Judgment
The Delhi High Court found the error to be minor and noted the Department’s admission of no duplicate ITC claims. It set aside the Order-in-Original dated 28th June 2024 and allowed the Assessee to claim ITC worth Rs. 5,65,91,691/-.
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The Copy Of the order is as under:
