Order Date – 25 September 2023

Parties: M/S Shree Krishna Traders Vs State of U.P. and Another

Facts –

• The Petitioner, M/S Shree Krishna Traders, was served with a show cause notice on 24.12.2022 for the financial year 2017-18 co-responding to tax period July, 2017 to March, 2018 and proceedings are initiated under Section 74 of the U.P. GST/CGST Act by respondent.
• It was contented by the petitioner that the difference in ITC claimed by the registered person in his return in Form of GSTR-3B and that available in Form GSTR-2A may be handled by following the procedure provided in para 4 of the circular dated 2.1.2023.

Issue –

• Whether proceedings initiated under section 74 of the CGST Act is proper?

Order –

• The Divisional Bench of Hon’ble High Court set aside the order as per the submission of revenue and matter is remitted back to respondent no.2 to pass fresh orders within a period of one month from today, taking into consideration the circular as well as any other material relied upon by the petitioner in support of its case.
• The writ petition disposed off.