Case Details: Premier Solar Powertech Pvt. Ltd. Versus Assistant Commissioner of Central GST and Central Excise (2025) 32 Centax 99 (Mad.)
Judiciary and Counsel Details
- C. Saravanan, J.
- Ms S. Gayathri for the Petitioner.
- Shri N. Dilip Kumar, Sr. Standing Counsel for the Respondent.
Facts of the Case
The petitioner, a registered person under the CGST Act and the Tamil Nadu GST Act, having business units in both Telangana and Tamil Nadu, effected a branch transfer of goods from its Telangana unit to its Tamil Nadu unit after duly discharging integrated tax (IGST) on the inter-state movement. However, by inadvertence, the petitioner availed input tax credit (ITC) of the said IGST in the GSTR-3B return filed for the Telangana registration. Upon realising the mistake, the petitioner reversed the wrongly availed credit by filing Form GST DRC-03 under the Telangana registration. The petitioner contended before the jurisdictional officer under CGST that since the IGST pertained to the inter-state branch transfer, the ITC ought to be admissible to the Tamil Nadu unit or, alternatively, the amount should be refunded if such credit was not available. The matter was accordingly placed before the High Court of Madras.
High Court Held
The High Court of Madras held that the petitioner had, prima facie, established a legitimate case for claiming either the input tax credit of IGST in respect of the Tamil Nadu unit or seeking a refund of the amount already paid and subsequently reversed in Telangana. The Court observed that the petitioner’s mistake in availing credit in the wrong registration jurisdiction was bona fide and had been voluntarily rectified through reversal in Form GST DRC-03. Emphasising the necessity of fair consideration of genuine representations by taxpayers, the Court directed the jurisdictional officer under CGST to examine the petitioner’s representation on merits and pass appropriate orders in accordance with law.
