Bombay HC Quashes GST Orders Over Rs 1.19 Crore Import IGST Missing From Portal, Directs Reconciliation

The petitioner sought credit for ₹1,19,38,621 in IGST paid on imports during FY 2019–2020.

The amount did not appear in its GST electronic credit ledger, allegedly because of a technical failure in the integration between ICEGATE and GSTN.

After the petitioner provided Bills of Entry and reconciliation statements in response to a discrepancy notice, the authorities passed an adjudication order and an appellate order against it.

The petitioner challenged both orders by writ petition.

The Court noted that the petitioner had produced documents supporting payment of the tax.

The Court identified no specific statutory provision as the basis of its decision.

It applied the principle that a taxpayer should not be made to suffer for technical or systems failures attributable to the authorities, particularly where documentary evidence supports payment of tax.

It also referred to Amar Iron Udyog Pvt. Ltd. v. Union of India, 2026 SCC OnLine Cal 6356, cited by the petitioner.

The Court kept all parties’ contentions open and did not decide the merits of the ITC claim.

The Court considered the non-reflection of IGST to be prima facie attributable to the failure of integration between ICEGATE and GSTN, systems maintained and controlled by the authorities, and found that the petitioner had no role in the transmission process.

Since the petitioner had produced documents supporting payment, denial of credit based solely on the portal’s non-reflection was unsustainable.

The appropriate course was to quash the orders and require reconciliation and fresh consideration, without determining the merits of the claim.

It directed Respondents 1–5 to reconcile and give due consideration to the IGST of ₹1,19,38,621 paid on imports during FY 2019–2020, and to reflect it in the petitioner’s electronic credit ledger on the GSTN portal.

The Court left all parties’ contentions open and disposed of the writ petition.