IMPORTANT POINT
[The judgment establishes that while Input Tax Credit (ITC) should not be denied solely based on procedural errors, strict compliance with the statutory provisions of the CGST Act is essential for availing such credits. The court reinforced the importance of self-assessment and accurate record-keeping by registered persons.]

ORDER :

Shree Chandrashekhar, A.C.J.

This writ petition has been filed with the following prayers:

(A) For declaration that Input Tax Credit (in short as “ITC”) of recipient of tax should not be denied merely on the ground that the invoice is not reflecting in GSTR-2A of the recipient where tax has already been discharged by the supplier of goods and/or services as per the provisions of section 16(2)(c) of Central Goods and Services Tax Act, 2017 (in short as “CGST Act, 2017”).

(B) For declaration that in absence of mechanism of matching and amendment in details provided under section 42 and 43 of CGST Act, 2017, rectification of GSTR-1 filed by the petitioner could not be done within the time period prescribed under section 37(3) of the CGST Act, 2017, therefore, petitioner should be provided mechanism to rectify its GSTR-1 for financial years 2017-18 to 2021-22.

(C) For restraining the Respondent 1 namely M/s Eastern Coalfields Ltd. ( in short as “ECL”) in deducting from the payments to be made to the petitioner for future invoices, the amount of GST not reflecting in GSTR-2A of ECL for the period 2017-18 to 2021-22, on account of non-uploading of the invoices in GSTR 1 as B2B invoice by the petitioner and/or issues in respect to value of tax shown by the petitioner in some invoices during the period 2017-18 to 2021-22.

(D) For declaration that Circular 183/15/2022-GST dated 27th December 2022 (Annexure-10) issued by the Central Board of Indirect Taxes and Customs (in short as “CBIC”), allowing ITC to the recipient even where invoices is not reflecting in FORM GSTR-2A, under the circumstances stated there under for FY 2017-18 and 2018-19 is equally applicable for financial years 2019-20, 2020-21 and 2021-22.

(E) For declaration that ITC of the recipient should not be denied where invoices has been duly declared by the supplier in its Annual Return and tax is discharged through FORM DRC-03 in terms of the guidelines issued in form of press release by CBIC dated 03.07.2019 (Annexure 2).

(F) For declaration that the substantive benefit of availing ITC should not be denied due to procedural lapse.

2. The petitioner-Firm pleads that it is incorporated under the Companies Act, 2013 and engaged in the business of works contract services, goods transportation agency services, cargo handling services etc.; and is duly registered under the Central Goods and Services Tax Act, 2017 (in short, CGST Act) and under the Jharkhand Goods and Services Tax Act, 2017 vide GST Registration No.20AAACT5873H1ZG. It had a contract with M/s Eastern Coalfields Ltd., (in short “ECL”) for providing support services for coal mining for an agreed consideration amount. According to the petitioner-Firm, for the financial years 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22 tax invoices were raised and the ECL availed ITC on such invoices as per Section 16 of the CGST Act, 2017. However, while preparing annual returns in Form GSTR-9 and reconciliation statements in Form GSTR-9C for the periods 2017-18, 2018-19, 2020-21 and 2021-22, it could detect that few of the invoices for Rs.96,01,598/- raised by it to ECL were not reported or reported as Business to Customer category (in short as “B2C”) instead of Business to Business category (in short as “B2B”). The petitioner-Firm has set up a case that such mistake occurred due to clerical error in preparing the monthly returns. The petitioner-Firm has produced such details in a tabular form in paragraph No.12 of the writ petition which according to it were submitted as per the guidelines issued by the Central Board of Indirect Taxes and Customs (in short “CBIC”). The petitioner-Firm has further stated that it paid Rs.60,40,301/- through Form GST DRC-03 or Form GSTR-3B against the total amount of Rs.96,01,598/- and, as regards the balance amount, it makes an excuse for non-payment on the ground of financial distress due