2025 (5) TMI 1352 - HC - GST

Disallowance of input tax credit (ITC) - bogus input tax credit - non-existent supplier - Availment of the alternative remedy - seeking withdrawal of the writ petition - HELD THAT - Faced with such situation this Court grants liberty to the petitioner to approach the appropriate authority as available under the CGST/OGST Act. Thus the writ petition stands disposed of as withdrawn with the aforesaid liberty.

Summary

The Orissa High Court, before Chief Justice Harish Tandon and Justice Murahari Sri Raman, disposed of a writ petition challenging the order dated 4th February 2023 by the Assistant Commissioner of State Tax under Section 74 of the CGST/OGST Act, 2017. The petitioner contested disallowance of input tax credit (ITC) claimed for July 2017 to March 2018, alleging the assessment was based on purported bogus ITC from a non-existent supplier whose registration was cancelled in 2019. The State argued the writ petition was not maintainable due to the availability of an "effective and efficacious alternative remedy" under the GST statute, which empowers the authority to adjudicate factual disputes and reassess evidence. The petitioner ultimately sought withdrawal of the writ petition to pursue the statutory appellate forum. The Court granted liberty to do so and disposed of the petition as withdrawn, emphasizing that the petitioner should "avail the opportunity of alternative remedy as provided in the statute."