𝐊𝐞𝐫𝐚𝐥𝐚 𝐇𝐢𝐠𝐡 𝐂𝐨𝐮𝐫𝐭 𝐬𝐞𝐭-𝐚𝐬𝐢𝐝𝐞 𝐭𝐡𝐞 𝐨𝐫𝐝𝐞𝐫 denying ITC due to a mismatch between GSTR-2A and GSTR-3B without providing hearing opportunity.

Facts of the Case 📅:
GMA Pinnacle Automotives Pvt. Ltd., the petitioner, faced an assessment for the period from July 2017 to March 2018.
Their claim for an Input Tax Credit (ITC) was denied as per the order.

Despite the petitioner’s efforts to rectify this by aligning with the GST guidelines and even expressing willingness via email dated 15.12.2023 to produce necessary documents, their claim was still rejected.
Issue ⚖️:
The issue was whether the denial of ITC due to discrepancies between GSTR 2A and GSTR 3B was justified without proper communication and clarification requested from the petitioner as stipulated by the circular dated 27.12.2022.
Argument by the Petitioner 🗣:
The petitioner argued that they were not asked by the tax officer to provide documents or explain the discrepancies in GSTR forms as required by the GST circular dated 27.12.2022.

They believed their right to claim ITC was unfairly rejected.
Court Judgment 🏛: The High Court of Kerala ruled in favor of the petitioner, setting aside the Ext.P1 order to the extent that it denied the Input Tax Credit.
The court directed that any application for rectification of the order regarding the ITC claim, accompanied by supporting documents, should be considered a new by the respondent following legal norms.