ITC can be claimed even in Mismatch of 2A & 2B provided Purchasing Dealer has taken all steps diligently

Last updated: 27 August 2021

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The Delhi VAT Tribunal has ruled that a purchasing dealer can claim Input Tax Credit (ITC) even if there's a mismatch between their Form 2A and 2B, as long as they acted diligently and in good faith. The tribunal followed a previous ruling stating that buyers cannot be held responsible for a seller's failure to deposit taxes, provided the buyer has met all their obligations. This judgement, though from the pre-GST era, has implications for current GST disputes regarding Form GSTR-2A/2B mismatches.

Court :
Delhi Value Added Tax, Appellate Tribunal (DVAT AT)

Brief :
In M/s Honeywell Automation India Ltd. v. Commissioner of Trade & Taxes, Delhi (Appeal No: 08-11/ATVAT/2019 dated August 13, 2021] M/s Honeywell Automation India Ltd. ("the Appellant") has filed the current appeal against Order dated March 23, 2019 wherein Special Objection Hearing Authority ("SOHA") disposed of the objections filed by the Appellant against notice for default assessment of tax and interest under Section 32(1)(c) and Section 32(1)(d) of the Delhi Value Added Tax Act, 2004 ("DVAT Act") for claiming of excess Input Tax Credit ("ITC") than the corresponding output tax reported by the selling dealer.

Citation :
Appeal No: 08-11/ATVAT/2019 dated August 13, 2021

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