Karnataka High Court
Rajlaxmi Marketing vs The Assistant Commissioner on 8 December, 2025
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
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IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
DATED THIS THE 8TH DAY OF DECEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 103095 OF 2025 (T-RES)
BETWEEN:
RAJLAXMI MARKETING,
SHOP NO.7/B APMC YARD,
DAM ROAD, HOSPET-583 201,
REP. BY ITS PROPRIETOR,
SMT. MAMTHA W/O. HIRALAL JAIN,
AAGE. 48 YEARS,
GSTIN. 29ALOPJ8979L1ZU.
...PETITIONER
(BY SMT. UMERA, ADVOCATE FOR
SRI. H.R.KAMBIYAVAR, ADVOCATES)
AND:
RAKESH 1. THE ASSISTANT COMMISSIONER
S OF COMMERCIAL TAXES (LGSTO-500),
HARIHAR HOSPET-583 231.
Digitally signed
by RAKESH S 2. THE UNION OF INDIA,
HARIHAR REPRESENTED BY ITS
Date: 2025.12.09
11:55:12 +0530 FINANCE SECRETARY,
MINISTRY OF FINANCE,
DEPARTMENT OF REVENUE,
NEW DELHI-110 001.
3. THE STATE OF KARNATAKA,
REPRESENTED BY ITS
FINANCE SECRETARY,
VIDHANA SOUDHA,
BENGALURU-560 001.
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4. THE COMMISSIONER OF
COMMERCIAL TAXES IN KARNATAKA,
VANIJYA THERIGE KARYALAYA,
1ST MAIN, GANDHINAGAR,
BENGALURU-560 009.
5. THE GOVERNMENT OF INDIA
MINISTRY OF FINANCE,
DEPARTMENT OF REVENUE,
CENTRAL BOARD OF EXCISE AND CUSTOMS,
GST POLICY WING,
NEW DELHI-110 001.
...RESPONDENTS
(BY SRI. T. HANUMAREDDY, AGA FOR R1, R3, R4;
SRI. M.B.KANAVI, R2, R5)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
DECLARE AND STRIKE DOWN SECTION 16(2) (C) OF THE
CGST/SGST ACTS AS BEING UNCONSTITUTIONAL, THE
SAME BEING VIOLATIVE OF ARTICLES 14 AND 19(1)(G) OF
THE CONSTITUTION OF INDIA. II. IN THE ALTERNATIVE,
THE PETITIONER MOST RESPECTFULLY PRAYS THAT THIS
HON'BLE HIGH COURT MAY BE PLEASED TO READ DOWN
THE PHRASEOLOGY HAS BEEN ACTUALLY PAID OCCURRING
IN SECTION 16(2)(C) OF THE CGST/SGST ACTS TO MEAN
OUGHT TO HAVE BEEN PAID. III. ISSUE A WRIT OF
CERTIORARI OR A DIRECTION TO GIVE BENEFIT UNDER AS
PER THE CIRCULAR NO.183/15/2022-GST ISSUED BY THE
RESPONDENT NO.5 VIDE ANNXURE - E. ISSUE WRIT OF
CERTIORARI OR A DIRECTION IN THE NATURE OF WRIT OF
CERTIORARI QUASHING THE IMPUGNED ORDER DATED
26.09.2023 PASSED BY THE RESPONDENT NO.1, BEARING
NO.ACCT/LGSTO-500/HPT/DRC-01, (17-18)/392/2023-24
VIDE ANNEXURE - A F.Y.2017-18, TO THIS WRIT PETITION.
THE PETITIONER MOST RESPECTFULLY PRAYS THAT THIS
HON'BLE HIGH COURT MAY BE PLEASED TO ISSUE A WRIT
OF CERTIORARI OR A DIRECTION IN THE NATURE OF A
WRIT OF CERTIORARI QUASHING THE IMPUGNED FORM
GST DRC-07 DATED 29.12.2023, PASSED BY RESPONDENT
NO.1 REFERENCE NO. ZD2912230922957 VIDE ANNEXURE-
B, F.Y. 2017-18, TO THIS WRIT PETITION AND ETC.,
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THIS WRIT PETITION, COMING ON FOR PRELIMINARY
HEARING THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:
ORAL ORDER
(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)
1. Heard the learned counsel appearing for the petitioner and learned counsels representing the respondents.
2. The learned counsel Ms. Umera appearing for the petitioner would give up the prayer qua the constitutional validity of Section 16(2) of the CGST Act.
3. The submission is placed on record.
4. For the rest of the issue that remains, the counsel for the petitioner submits that it is already considered by this Court in W.P. No.108748/2025 disposed of on 24.11.2025. The same reads as follows:
1. The petitioner is before this Court seeking for the following prayer:
a. Issue a writ of certiorari or any other appropriate writ or quashing the order-in- appeal dated 29-03-2025 passed by the respondent-1 order-in-appeal No.BGM-JJ- ADC-229-2024-25-GST and vide Annexure-A and quash the adjudication order bearing -4- NC: 2025:KHC-D:17383 WP No. 103095 of 2025 HC-KAR No.BEL-CGST-000-HUB-SUP-RHB-08-2023- 24 dated 07-12-2023 passed by the respondent -2 and vide Annexure -B. b. And also such other and further relief as this Hon'ble Court deems fit considering the facts and circumstances of the case, to meet the ends of justice.
2. Heard the learned counsel Sri.S.G.Solargoppa appearing for the petitioner.
3. Learned counsel appearing for the petitioner would submit that, the issue in the lis stands covered by the judgment rendered by the Co-ordinate Bench of this Court in Writ Petition No.16175/2022, disposed off on 06th January 2023, wherein it is held as follows:
"1. In this petition, petitioner has sought for the following prayer:-
"a) To issue order(s), directions, writ(s) in the nature of mandamus, directing Respondent No.1 to allow the petitioner access to the GST portal in order to the rectify form GSTR-1 uploaded between FY 2017-18 and 2018-19 with respect to those invoices issued to the Recipient so as to enable the recipient to take credit of the tax paid by the petitioner notwithstanding the time limit prescribed in Section 16(4) of the CGST Act.
b) In the alternative, to issue, orders(s) directions, writ(s) in the nature of mandamus, directing Respondent No.1 to respond and consider the request made by the Petitioner vide letter dated: 06.09.2021 enclosed in Annexure-D.
c) To issues order(s), directions, writ(s), or any other relief as this Hon'ble Court deems it fit and proper in the facts and circumstance of the case in the interest of justice."
2. Heard learned Senior counsel for the petitioner, learned counsel for respondents 1 to 3 - revenue, learned AGA for the 4th respondent as well as learned -5- NC: 2025:KHC-D:17383 WP No. 103095 of 2025 HC-KAR counsel for the 5th respondent and perused the material on record.
3. In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned Senior counsel for the petitioner invites my attention to the Circular bearing No.183/15/2022-GST dated 27.12.2022 in order to point out that the petitioner as well as the 5th respondent would be entitled to the benefit of the directions issued in the said Circular with regard to the errors committed in the Invoices and the relevant forms of both the petitioner and 5th respondent and as such, the present petition deserves to be disposed of in terms of the said Circular.
4. Per contra, learned counsel for the respondentsrevenue submits that the said Circular is not applicable insofar as the petitioner and 5th respondent are concerned and that there is no merit in the petition and the same is liable to be dismissed.
5. In order to appreciate the rival contentions, it is necessary to extract the said Circular, which reads as under:-
Circular No. 183/15/2022-GST F. No. CBIC-20001/2/2022 - GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing ***** New Delhi, Dated the 27th December, 2022 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All)/ The Principal Directors General/ Directors General (All) Madam/Sir, Subject: Clarification to deal with difference in Input Tax Credit (ITC) availed in FORM GSTR-3B as compared to that detailed in FORM GSTR-2A for FY 2017-18 and 2018-19 - reg.
Section 16 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act") provides -6- NC: 2025:KHC-D:17383 WP No. 103095 of 2025 HC-KAR for eligibility and conditions for availing Input Tax Credit (ITC). During the initial period of implementation of GST, during the financial years 2017-18 and 2018-19, in many cases, the suppliers have failed to furnish the correct details of outward supplies in their FORM GSTR-1, which has led to certain deficiencies or discrepancies in FORM GSTR-2A of their recipients. However, the concerned recipients may have availed input tax credit on the said supplies in their returns in FORM GSTR-3B. The discrepancies between the amount of ITC availed by the registered persons in their returns in FORM GSTR-3B and the amount as available in their FORM GSTR-2A are being noticed by the tax officers during proceedings such as scrutiny/ audit/ investigation etc. due to such credit not flowing to FORM GSTR-2A of the said registered persons. Such discrepancies are considered by the tax officers as representing ineligible ITC availed by the registered persons, and are being flagged seeking explanation from the registered persons for such discrepancies and/or for reversal of such ineligible ITC.
2. It is mentioned that FORM GSTR-2A could not be made available to the taxpayers on the common portal during the initial stages of implementation of GST. Further, restrictions regarding availment of ITC by the registered persons upto certain specified limit beyond the ITC available as per FORM GSTR-2A were provided under rule 36(4) of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as "CGST Rules") only with effect from 9th October 2019. However, the availability of ITC was subjected to restrictions and conditions specified in Section 16 of CGST Act from 1st July, 2017 itself. In view of this, various representations have been received from the trade as well as the tax authorities, seeking clarification regarding the manner of dealing with such discrepancies between the amount of ITC availed by the registered persons in their FORM GSTR-3B and the amount as available in their FORM GSTR-2A during FY 2017-18 and FY 2018-19.
3. In order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under Section 168(1) of the CGST Act, hereby clarifies as follows;
S
Scenario Clarification
l
.
N
o
.
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a Where the supplier has In such cases, the
failed to file FORM GSTR-1 difference in ITC claimed
for a tax period but has by the registered person
filed the return in FORM in his return in FORM
GSTR-3B for said tax GSTR-3B and that
period, due to which the available in FORM GSTR-
supplies made in the said 2A may be handled by
tax period do not get following the procedure
reflected in FORM GSTR-2A provided in para 4 below.
of the recipients.
b Where the supplier has In such cases, the
filed FORM GSTR-1 as well difference in ITC claimed
as return in FORM GSTR- by the registered person
3B for a tax period, but has in his return in FORM
failed to report a particular GSTR-3B and that
supply in FORM GSTR-1, available in FORM GSTR-
due to which the said 2A may be handled by
supply does not get following the procedure
reflected in FORM GSTR-2A provided in para 4 below.
of the recipient.
c Where supplies were made In such cases, the
. to a registered person and difference in ITC claimed
invoice is issued as per by the registered person
Rule 46 of CGST Rules in his return in FORM
containing GSTIN of the GSTR-3B and that
recipient, but supplier has available in FORM GSTR-
wrongly reported the said 2A may be handled by
supply as B2C supply, following the procedure
instead of B2B supply, in provided in para 4 below.
his FORM GSTR-1, due to
which the said supply does
not get reflected in FORM
GSTR-2A of the said
registered person.
Where the supplier has In such cases, the
filed FORM GSTR-1 as well difference in ITC claimed
as return in FORM GSTR- by the registered person
3B for a tax period, but he in his return in FORM
has declared the supply GSTR-3B and that
with wrong GSTIN of the available in FORM GSTR-
recipient in FORM GSTR-1 2A may be handled by
following the procedure
provided in para 4 below.
In addition, the proper
officer of the actual
recipient shall intimate
the concerned whose
jurisdictional tax authority
of the registered person,
GSTIN has been
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mentioned wrongly, that
ITC on those transactions
is required to be
disallowed, if claimed by
such recipients in their
FORM GSTR- 3B.
However, allowance of
ITC to the actual recipient
shall not depend on the
completion of the action
by the tax authority of
such registered person,
whose GSTIN has been
mentioned wrongly, and
such action will be
pursued as an
independent
action.
4. The proper officer shall first seek the details from the registered person regarding all the invoices on which ITC has been availed by the registered person in his FORM GSTR 3B but which are not reflecting in his FORM GSTR 2A. He shall then ascertain fulfillment of the following conditions of Section 16 of CGST Act in respect of the input tax credit availed on such invoices by the said registered person:
i) that he is in possession of a tax invoice or debit note issued by the supplier or such other tax paying documents;
ii) that he has received the goods or services or both;
iii) that he has made payment for the amount towards the value of supply, along with tax payable thereon, tot he supplier.
Besides, the proper officer shall also check whether any reversal of input tax credit is required to be made in accordance with section 17 or section 18 of CGST Act and also whether the said input tax credit has been availed within the time period specified under sub-section (4) of section 16 of CGST Act.
4.1 In order to verify the condition of clause (c) of sub-section (2) of Section 16 of CGST Act that tax on the said supply has been paid by the supplier, the following action may be taken by the proper officer:
-9-NC: 2025:KHC-D:17383 WP No. 103095 of 2025 HC-KAR 4.1.1 In case, where difference between the ITC claimed in FORM GSTR-3B and that available in FORM GSTR 2A of the registered person in respect of a supplier for the said financial year exceeds Rs 5 lakh, the proper officer shall ask the registered person to produce a certificate for the concerned supplier from the Chartered Accountant (CA) or the Cost Accountant (CMA), certifying that supplies in respect of the said invoices of supplier have actually been made by the supplier to the said registered person and the tax on such supplies has been paid by the said supplier in his return in FORM GSTR 3B. Certificate issued by CA or CMA shall contain UDIN. UDIN of the certificate issued by CAs can be verified from ICAI website https://udin.icai.org/search-udin and that issued by CMAs can be verified from ICMAI website https://eicmai.in/udin/VerifyUDIN.
aspx .
4.1.2 In cases, where difference between the ITC claimed in FORM GSTR-3B and that available in FORM GSTR 2A of the registered person in respect of a supplier for the said financial year is upto Rs 5 lakh, the proper officer shall ask the claimant to produce a certificate from the concerned supplier to the effect that said supplies have actually been made by him to the said registered person and the tax on said supplies has been paid by the said supplier in his return in FORM GSTR 3B.
4.2 However, it may be noted that for the period FY 2017-18, as per proviso to section 16(4) of CGST Act, the aforesaid relaxations shall not be applicable to the claim of ITC made in the FORM GSTR-3B return filed after the due date of furnishing return for the month of September, 2018 till the due date of furnishing return for March, 2019, if supplier had not furnished details of the said supply in his FORM GSTR-1 till the due date of furnishing FORM GSTR 1 for the month of March, 2019.
5. It may also be noted that the clarifications given hereunder are case specific and are applicable to the bonafide errors committed in reporting during FY 2017-18 and 2018-19. Further, these guidelines are clarificatory in nature and may be applied as per the actual facts and circumstances of each case and shall not be used in the interpretation of the provisions of law.
6. These instructions will apply only to the ongoing proceedings in scrutiny/audit/ investigation, etc. for FY 2017-18 and 2018-19 and not to the completed proceedings. However, these instructions will apply in those cases for FY 2017-18 and 2018-19 where any adjudication or appeal proceedings are still pending.
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7. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.
Sanjay Mangal Principal Commissioner (GST)
6. As rightly contended by the learned Senior counsel for the petitioner, a perusal of the Invoices at Annexure-C will indicate that while supplies are made by the petitioner to the 5th respondent - M/s.ABB Global Industries and Services Private Limited, the GSTIN Number mentioned in the Invoices has been incorrectly shown as that of ABB India Limited, which is a completely different and independent juristic and legal entity from the 5th respondent herein. Under these circumstances, having regard to the language employed in the Circular, which contemplates rectification of the bonafide and inadvertent mistakes committed by the persons at the time of filing of Forms and submitting Returns, in the peculiar and special facts and circumstances of the instant case, I am of the considered opinion that the error committed by the petitioner in showing the wrong GSTIN number in the Invoices which was carried forward in the relevant Forms as that of ABB India Limited instead of the 5th respondent i.e., M/s.ABB Global Industries and Services Private Limited, is clearly a bonafide error, which has occurred due to bonafide reasons, unavoidable circumstances, sufficient cause and consequently, the aforesaid Circular would be directly and squarely applicable to the facts of the instant case.
7. A perusal of the aforesaid Circular also indicates that the procedure to be followed in such cases has been prescribed at paragraph-4. In addition to the Circular, the petitioner has also filed an Affidavit satisfying the conditions stipulated in paragraph - 4.1.1 of the Circular, enclosing the details of the Invoices issued by the petitioner to the 5th respondent. The 5th respondent has filed statement of objections setting out the facts admitting, accepting and re- enforcing the claim of the petitioner with regard to the discrepancies / mismatch in mentioning of the GSTIN Number.
8. Under these circumstances, I am of the considered opinion that it would be just and proper to dispose of this petition directing the respondents 1 to 3 - revenue to follow the procedure prescribed in the Circular and apply the said Circular to the facts of the instant case of the petitioner, 5th respondent and their
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20. It is also necessary to state that though the Circular refers only to the years 2017-18 and 2018-19, since there are identical errors committed by the petitioner not only in respect of the assessment years 2017-18 and 2018-19 but also in relation to the assessment year 2019-20 also, I am of the view that by adopting a justice oriented approach, the petitioner would be entitled to the benefit of the Circular for the year 2019-20 also.
9. In the result, I pass the following:-
ORDER
(i) Petition is hereby disposed of directing the respondents 1 to 3 to take necessary steps in relation to the petitioner and 5th respondent for the assessment years 2017-18, 2018-19 and 2019-20 in terms of the Circular No. bearing No.183/15/2022-GST dated 27.12.2022.
(ii) The respondents 1 to 3 are hereby directed to consider the request made by the petitioner vide letter at Annexure-D dated 06.09.2021 and proceed further in accordance with law and in terms of the Circular dated 27.12.2022 as expeditiously as possible."
4. In the light of the issue standing covered by the judgment passed by the Co-ordinate Bench of this Court (supra), I deem it appropriate to pass the following:
ORDER i. Writ Petition is allowed in part.
ii. The Order-in-Original dated 07.12.2023 passed by respondent No.2 vide Annexure-B stands quashed.
iii. The Order-in-Appeal dated 29.03.2025 passed by respondent No.1 vide Annexure-A stands quashed.
iv. The petitioner shall now submit his reply to the show cause notice dated 22.09.2023, within four weeks from the date of receipt of a copy of the order.
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Ordered accordingly."
5. In the light of this Court held as quoted above in W.P. No.108748/2025 disposed of on 24.11.2025 and in the light of the said circumstance, the petition deserves to succeed with the same order being granted in favour of the petitioner.
Ordered accordingly.
Sd/-
(M.NAGAPRASANNA) JUDGE RSH/CT-ASC List No.: 1 Sl No.: 18