No wrongful availment of credit available under IGST head by taxpayer through CGST and SGST – Kerala High Court {Grand Hyundai V/s State Tax Officer – (2025) 31 Centax 125 (Ker.) }
Issue:
Whether a taxpayer can be said to have wrongly availed Input Tax Credit (ITC) under the IGST head by utilizing the credit towards liabilities under the CGST and SGST heads, and whether such utilization amounts to a contravention attracting liability under Section 73 of the CGST Act, 2017.
Facts:
Grand Hyundai challenged an assessment order alleging wrongful ITC utilization under Section 73 of the CGST Act. Citing the Kerala High Court ruling in Rejimon Padickapparambil Alex, which held that using IGST credit for CGST/SGST is not wrongful as the credit ledger functions like a wallet with separate compartments, the assessee argued the same principle applied to its case.
Held:
- Since the appeal was pending, the High Court refrained from interfering with the assessment order.
- However, the Appellate Authority was directed to expeditiously dispose of the appeal within four weeks, taking into account the legal position established in Rejimon (supra).
Legal Provisions Involved:
Section 16 r/w Section 73, CGST Act, 2017 – dealing with eligibility and conditions for taking ITC and determination of tax not paid or short paid due to fraud or willful misstatement.
