Fresh Opportunity of hearing be granted when guidelines prescribed in Circular relating to discrepancies in Form GSTR-3B and Form GSTR-2A for claiming of ITC has not been complied with

The Hon’ble Karnataka High Court in the case of R.S Marketing and Logistics Private Ltd. v. Commercial Tax Officer [W.P No. 7295 of 2024 dated June 05, 2024], set aside the adjudication order and remanded the matter back for reconsideration wherein the guidelines prescribed in Circular No. 183/15/2022-GST dated December 27, 2022 (“the Circular”) relating to discrepancies in Form GSTR-3B and Form GSTR-2A for claiming of ITC has not been complied with.

Facts:

R.S Marketing and Logistics Private Limited (“the Petitioner”), filed a writ petition against an order dated May 2, 2023 (“the Impugned Order”) passed by the Revenue department (“the Respondent”) guidelines prescribed inthe Circular relating to discrepancies in Form GSTR-3B and Form GSTR-2A for claiming of ITC

Issue:

Whether the Petitioner entitled to an opportunity of hearing when the procedure prescribed in the Circular relating to discrepancy in Form GSTR-3B and Form GSTR-2A has not been complied with?

Held:

The Hon’ble Karnataka High court in W.P. No. 7295 of 2024 held as under:

• Noted that, the Circular is made applicable specifically w.r.t. FY 2017-2018 and procedure has been prescribed in case where the ITC claimed is less than five lakh rupees.
• Opined that, the procedure prescribed in the Circular has not been complied with by the Respondent.
• Held that, the Impugned Order is set aside and remitted the matter back for reconsideration.

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