Bombay HC: Review GST Tax Credit Application, Process Stopped Due to Typographical Error

The Bombay High Court (HC) chaired by Justice Abhay Ahuja and Justice Nitin Jamdar ordered the Sales tax department to review the Goods and Services Tax (GST) Input Tax Credit (ITC) application for refund. It was also ordered by the High Court to assess the evidence that the petitioner presented along with the invoices and take a move on it.

The Petitioner, Principal Global Services Pvt. Ltd., applied to seek compensation of Rs. 7,53,20,729 on 11th January 2022 in the view of refund of GST ITC on Export of Goods and Services without payment of Integrated tax.

The application was inspected by the Deputy Commissioner of Sales Tax who found discrepancies. Therefore, they sent a show cause notice to the petitioner. The petitioner responded to the notice.

The issue, as per the invoices specified, is that services were exported to clients in Lowa State, USA. As opposed to this claim, a State with such a name doesn’t even exist in the US. The dealer clarified that this was an error or typo during the submission. The State’s correct name is believed to be Lova (iova). He requested to accept the submission.

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However, the Commissioner disapproved of the submissions made by the dealer. It was stated that typo mistakes are not common at all. In addition to this conclusion, the commissioner also observed that the same State name, Lowa, is used by the dealer in the invoice. Instead of exporting items, this is doing so. Also, there has not been provided any supportive documentation by the dealer such as dispatch proofs.

The bench noted that the typographical error is clear to be notified of because there is no such State in the US. The denoting name to that place is Lowa State, so, the clarification of the petitioner is reasonable and should have been regarded by the Deputy Commissioner. Also, it is obvious to the petitioner to supply supportive documents to claim the refund.