The Calcutta High Court, in Mongal Deep Enterprise & Anr. -versus- The State of West Bengal & Ors., W.P.A 13375 of 2025, considered a challenge to an ex parte assessment order passed under Section 73 of the CGST Act involving denial of Input Tax Credit on account of mismatch between GSTR-3B and GSTR-2A.
The petitioners were traders of food products operating under the “Monginis Snacks”, subsequently “Mio Amore”, franchise. They challenged the assessment order dated 11 December 2023 as well as the appellate order dated 1 March 2025.
Dispute Over ITC Mismatch
A show-cause notice dated 29 September 2023, relating to the period from July 2017 to March 2018, proposed a demand of Rs. 2,28,241/- on account of alleged mismatch in Input Tax Credit.
The petitioners contended before the High Court that the show-cause notice had not been served upon them and that the prescribed procedure for verification and reconciliation of ITC mismatch had not been followed before confirming the demand.
Circular No. 183/15/2022-GST
The principal issue before the Court concerned compliance with Circular No. 183/15/2022-GST dated 27 December 2022.
The Court observed that the impugned orders appeared to have been passed without following paragraph 4 of the Circular. Under the prescribed procedure, where a difference arises between the ITC claimed in GSTR-3B and the credit reflected in GSTR-2A, the proper officer is required to obtain relevant invoice details and examine whether the statutory conditions governing availment of ITC under Section 16 of the CGST Act have been fulfilled.
Accordingly, an ITC mismatch by itself cannot be dealt with without undertaking the verification contemplated under the Circular.
High Court’s Direction
The High Court directed the petitioners to submit a comprehensive representation by 30 September 2026 before respondent no. 4.
The concerned authority was directed to consider and dispose of the representation by passing a reasoned order after granting the petitioners a reasonable opportunity of hearing.
At the same time, the Court clarified that the adjudicating authority would remain free to consider and decide the matter independently on its merits.
The writ petition was accordingly disposed of with directions.
Key Takeaway
The decision highlights the importance of following the prescribed verification mechanism before confirming a GST demand arising from a mismatch between GSTR-3B and GSTR-2A. Where Circular No. 183/15/2022-GST is applicable, the proper officer is expected to examine the relevant invoices and verify compliance with the conditions under Section 16 before determining the admissibility of Input Tax Credit.
Case: Mongal Deep Enterprise & Anr. -versus- The State of West Bengal & Ors.
Court: Calcutta High Court (Single Judge)
Case No.: W.P.A 13375 of 2025
Relevant Provision: Section 73 and Section 16 of the CGST Act
Circular: Circular No. 183/15/2022-GST dated 27.12.2022
Issue: ITC mismatch between GSTR-3B and GSTR-2A
Result: Writ Petition Disposed Of with Directions.
