HC Allowed Assessee to File Rectification Where ITC Was Disallowed for Being Claimed Under Wrong Head

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Input Tax Credit Clerical Error

Case Details: Tvl. Thendral Electricals v. Commissioner of Commercial Taxes - [2024] 167 taxmann.com 269 (Madras)

Judiciary and Counsel Details

  • Mohammed Shaffiq, J.
  • B. Rooban, for the Petitioner.
  • R. Suresh Kumar Addl. Govt. Pleader. for the Respondent.

Facts of the Case

The petitioner was eligible to Input Tax Credit (ITC) but inadvertently, the petitioner while filing the monthly return had entered the ITC in column 4(A)(1)(3) and 4(A)(1)(4) by bifurcating the same under the head “Central Tax” and “State Tax” instead of Integrated Tax. The department issued order under Section 73 denying ITC claim on the ground that in view of the above error, the petitioner was not entitled to claim credit of the taxes paid under the IGST Act.

It filed writ petition against the order and contended that it was only a clerical error which was apparent on the face of the record.

High Court Held

The Honorable High Court noted that this is only a clerical error which is apparent on the face of the record and thus denial of Input Tax Credit is unjustified. Moreover, the petitioner was eligible to file rectification petition under Section 161 of the CGST Act, 2017. Therefore, the Court directed the petitioner to file rectification petition within two weeks and the tax authorities were directed to consider rectification petition and pass orders after giving opportunity of hearing.

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