Top-5 Recent Judgments on ITC Issues

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Top-5 recent Judgments on ITC issues: 1. Where assessee had availed excess ITC and reversed it before utilizing it for payment of central tax liabilities, demand for interest and penalty by revenue was to be held invalid. Punjab & Haryana HC in Deepak Sales Corporation v UOI

2. Reimbursement of GST on account of price variation of item used in contract could not be denied on ground that output tax was paid through electronic credit ledger using input tax credit. Gauhati High Court in HCC-CPL (JV) vs Union of India

3. Where there was business transfer, but Form ITC-02 for transfer of input tax credit was not available on GST Portal, adjustment by use of Form GSTR-3B was illegal; as GST common portal was not online, authority should pass fresh order taking into consideration objections

of petitioner. Allahabad High Court in Tikona Infinet Pvt. Ltd. vs State of Uttar Pradesh

4. Rule 86A is a provision that secures interest of revenue; since nature of order passed under Rule 86A is provisional, a post-decision hearing could be granted to petitioners which would comply with principles of natural justice. Karnataka High Court in K-9 Enterprises vs

State of Karnataka 5. Where ITC of petitioner was blocked and show cause notices were issued, since petitioner was required to deposit only 10 per cent of penalty amount in appeal remedy, account of petitioner could not be blocked beyond 10 per cent of penalty amount.

Punjab and Haryana High Court in K.J. International vs State of Punjab I hope you will find these useful. Fighting for Tax Simplification, Unnecessary Demands and Notices in GST and Direct Taxes Abhishek Raja Ram 9810638155