In a recent case, the Kerala High Court upheld the denial claim of Input Tax Credit ( ITC ) on the ground that the claim was fraudulent as it was claimed based on a forged invoice. The court dismissed the writ petition and directed the adjudication authority to complete the adjudication process expeditiously. Sri Puthaparambil Shereef Shanavas, the petitioner sought for quashing of the intimation to the petitioner blocking the input tax credit. Rule 86A of the Goods and Service Tax ( GST ) Rules, 2017 provides the conditions of use of the amount available in the electronic credit ledger and empowers the Commissioner or the Officer authorised by him under Sub-Rule (1) to disallow the debit on electronic credit ledger on being satisfied that the conditions for disallowing the debit exist.

Ms. Reshmita Ramachandran, Government Pleader submitted that allegations against the petitioner are that the input tax credit has been claimed based on the forged invoices without a supply of any goods and services and the competent Officer has reason to believe that the claim for input tax credit is fraudulent. The single bench of Justice Dinesh Kumar Singh didn’t find that impugned notices/intimations are without jurisdiction or contrary to the law as provided under the GST Act or Rules made thereunder. Since there was no ground to interfere with the impugned intimation and notices, the court dismissed the writ petition. The adjudication authority is directed to complete the adjudication process expeditiously.