Proceedings under Section 73 of the CGST Act for denial of ITC and imposing interest and penalty on availment of Credit under wrong head not maintainable

Last updated: 05 February 2025

Court :
Kerala High Court

Brief :
The Hon'ble Kerala High Court in Maruthengal Moideen& Ors. v. State Tax Officer & Ors. [W.P.(C) No. 20837 of 2024 dated January 13, 2025] quashed the order passed under Section 73 of the Central Goods and Services Tax Act, 2017 ("the CGST Act"), along with interest and penalty imposed for alleged violation of Section 16(2)(c) of the CGST Act, in case where the ITC was availed under wrong head i.e. availment of credit under the head of CGST and SGST instead of IGST interalia holding that, the benefit of the judgment of the Hon'ble Kerala High Court in the case of RejimonPadickapparambil Alex v. Union of India & Ors.[WA No. 54 of 2024 dated November 26, 2024] was available in the present case wherein it was held that that there can be no wrong availing of input tax credit when such credit, available in IGST, was availed under the heads CGST and SGST.

Citation :
W.P.(C) No. 20837 of 2024 dated January 13, 2025