The Delhi High Court has quashed the order demanding Rs.5,65,91,691 in a case where it was alleged that the petitioner has wrongly availed of excess Input Tax Credit (ITC).
The bench Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta has observed that the only basis for rejecting the ITC is the mention of the Bombay office GSTN instead of the Delhi office GSTN. Substantial loss would be caused to the Petitioner if the credit is not granted for such a small error on behalf of the supplier.
The Petitioner/assessee is a company engaged in the sale of various pharmaceutical products and medical devices. The Petitioner purchased a large quantity of products from Ahlcon on the basis of various purchase orders. The invoices for the said products were raised by Ahlcon on the Petitioner, however, the invoices inadvertently reflected the Bombay address and Bombay GSTN of the Petitioner, instead of the Delhi GSTN number. This has led to the demand.
The Petitioner, relied upon the purchase orders and invoices, and submitted that, the Petitioner is clearly a Delhi based company and incorrect reflection of Petitioner’s Bombay GSTN on the invoices was merely an error by the supplier.
However, the Department had taken a stand that the Petitioner is not entitled to the ITC and has accordingly, passed the order.
The court set aside the order in Original rejecting the ITC and permitted the Petitioner to avail of the Input Tax Credit in respect of the supplies.
Case Details
Case Title: M/S B Braun Medical India Pvt Ltd Versus Union Of India & Ors.
Case No.: W.P.(C) 114/2025 & CM APPL. 434/2025
Date: 12/03/2025
Counsel For Petitioner: Tarun Gulati, Sr. Advocate
Counsel For Respondent: Shubham Tyagi
