The Bombay High Court (HC) presided by Justice Abhay Ahuja and Justice Nitin Jamdar directed the Sales tax department to reconsider the Goods and Services Tax (GST) Input Tax Credit (ITC) refund application. Also to examine the evidence that is produced by the Petitioner in addition to the invoices and take a decision.
The Petitioner Principal Global Services Pvt. Ltd., filed an application for refund of Rs.7,53,20,729 on 11 January 2022 on account of refund of Input Tax Credit (ITC) on Export of Goods and Services without payment of Integrated tax.
The Deputy Commissioner of Sales Tax scrutinized the application and having found discrepancies, issued a show cause notice to the Petitioner. The Petitioner replied to the show cause notice.
The problem is that the invoices indicate that services were exported to clients in Lowa State, USA. In contrast, such a state doesn’t exist in the US. The dealer claims that there was a “typo error” in the submission. The state’s real name should be Iova (iova). He asked for the submission to be accepted.
The submissions made by the dealer were rejected by the commissioner. It was mentioned that typos are extremely uncommon. Additionally, the Commissioner noted that the dealer’s invoice used the same state name, Lowa. Also, rather than exporting commodities, this is doing so. The dealer has not provided any additional export documentation, such as dispatch proofs.
The bench observed that there is an obvious typographical error as there is no such State in the United States. The corresponding name to that place is Iowa State, and therefore, the explanation of the Petitioner is plausible and should have been considered by the Deputy Commissioner. Also, it is open to the Petitioner to supply additional documents in support of its claim for refund.
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