S. 73 Proceedings on GST ITC Availment on Payment Under Dispute in Appeal: Allahabad HC Finds Matter Worth Consideration, Grants Interim Relief [Read Order]
To protect the petitioner from undue hardship, the Court granted interim relief, directing that no coercive action shall be taken against the petitioner until the next date of listing
![S. 73 Proceedings on GST ITC Availment on Payment Under Dispute in Appeal: Allahabad HC Finds Matter Worth Consideration, Grants Interim Relief [Read Order]](https://images.taxscan.in/h-upload/2025/06/23/2053292-itc-payment-gst-itc-availment-taxscan.webp "S. 73 Proceedings on GST ITC Availment on Payment Under Dispute in Appeal: Allahabad HC Finds Matter Worth Consideration, Grants Interim Relief [Read Order]")
The Allahabad High Court has given interim relief to a taxpayer who is facing proceedings under Section 73 of the CGST Act, 2017 in a case pertaining to the extent of Input Tax Credit (ITC) availment under the Goods and Services Tax ( GST ).
WhenJustice Piyush Agrawal heard the matter, he stated that the petitioner should be subject to limited coercive action in the interim and that the grounds raised require consideration.
The petitioner, Kshetriya Shree Gandhi Ashram, engaged in taxable supply of goods or services, had duly reported his outward supply in Form GSTR-1. Based on the recipient’s reflection of the transaction in GSTR-2A, the petitioner proceeded to avail Input Tax Credit and filed the return in Form GSTR-3B, following the standard mechanism under the GST Act.
However, proceedings under Section 73 were initiated by the department, alleging wrongful availment of ITC since the payment corresponding to the transaction was under dispute in the appeal.
The petitioner contended that the said payment was under dispute and had already been made the subject of an appeal. Although the appeal was dismissed, the dismissal was solely on the procedural ground of laches (i.e., delay in filing).
After hearing both sides, the Court observed that the matter requires consideration. Accordingly, it granted four weeks’ time to the respondents, including the GST department, to file their counter affidavit, with liberty to the petitioner to file a rejoinder affidavit within one week thereafter. The matter is to be listed in the week commencing 28th July 2025.
Meanwhile, to protect the petitioner from undue hardship, the Court granted interim relief, directing that no coercive action shall be taken against the petitioner until the next date of listing, provided that the petitioner deposits 10% of the deficiency amount within 15 days from the date of the order.
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