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PRITINKER DIWAKER, ASHUTOSH SRIVASTAVA
Shree Krishna Traders – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Heard Sri Aditya Pandey, learned counsel for the Petitioner and Sri Ankur Agarwal, learned counsel appearing for the Respondent Revenue.
2. Challenge in this writ petition is to the proceedings initiated under Section 74 of the U.P. GST/CGST Act by respondent No.2 consequent to the notice dated 24.12.2022 for the financial year 2017-18 co-responding to tax period July, 2017 to March, 2018. Further prayer for quashing of the impugned order dated 26.7.2023 passed under Section 74 of the U.P. GST/CGST Act for the financial year 2017-18 has been sought.
3. Learned counsel for the Petitioner has invited attention of this Court to a circular dated 2.1.2023 with regard to the input tax availed in the form of GSTR-3B and has placed reliance on paragraph 3(d) to demonstrate that where the supplier has filed Form GSTR-1 as well as return in the Form of GSTR-3B for the tax period, but he has declared the supply with wrong GSTIN of the recipient in the Form of GSTR-1. In such cases, the difference in ITC claimed by the registered person in his return in Form of GSTR-3B and that available in Form GSTR-2A may be handled by following the procedure provided in para 4 of the circular. In
Authority must follow prescribed procedures for disallowing input tax credit as per the relevant circular when incorrect GSTIN is declared.
The court affirmed the right to correct bonafide errors in GST filings, emphasizing fair application of tax laws in line with past judgments.
Taxpayers should not be penalized for genuine errors, and proper officers must consider all relevant records when addressing rectification applications.
[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 av....
The court ruled that retroactive tax demands must be supported by appropriate show cause notices as per statutory requirements; failure to issue such notices invalidates new assessments.
Retrospective cancellation of a supplier's GST registration cannot solely deny Input Tax Credit without proper justification and results in a duty on authorities to provide reasoned orders.
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