Gauhati High Court rejects GST notice quashing for Jorhat company

The Gauhati High Court has dismissed a writ appeal filed by a Jorhat-based company, M/s Surya Business Private Limited, regarding a show cause notice for the recovery of approximately Rs 27.25 lakh in input tax credit (ITC).

The dispute arose following an audit under the Assam Goods and Services Tax Act, 2017, which alleged that the company had excess ITC claims because certain invoices from a registered supplier were not reflected in the company’s GSTR-2A filings. The company argued that it held valid tax invoices, had received the goods, and had completed payments through banking channels, asserting that GSTR-2A is merely a facilitating mechanism.

A Division Bench of the court held that the question of whether the company is a bona fide purchaser entitled to the credit is a matter for the proper officer to decide, rather than a ground to quash the notice through writ jurisdiction.