M/S Wipro Limited India vs The Assistant Commissioner Of Central ... on 6 January, 2023

Summary of Judgment: M/S Wipro Limited India vs The Assistant Commissioner Of Central Tax

1. Outcome

The writ petition was disposed of in favour of the petitioner, M/s Wipro Limited. The High Court directed the GST authorities (Respondents 1 to 3) to apply the procedure laid out in Circular No. 183/15/2022-GST dated 27.12.2022 to rectify the errors in Wipro's filings. This direction was made applicable for the financial years 2017-18, 2018-19, and extended by the court to 2019-20 as well.

2. Core Issue

The core issue was whether a supplier (Wipro) could be permitted to rectify a bona fide error in its FORM GSTR-1 for past financial years, specifically an incorrect GSTIN of the recipient, to enable the actual recipient (M/s. ABB Global) to claim legitimate Input Tax Credit (ITC), notwithstanding the time limits prescribed under Section 16(4) of the CGST Act.

3. Key Facts

• Supplier: M/s Wipro Limited India (Petitioner).
• Intended Recipient: M/s. ABB Global Industries and Services Private Limited (Respondent No. 5).
• The Error: In its tax invoices and subsequently in its FORM GSTR-1 filings for FY 2017-18 and 2018-19, Wipro mistakenly mentioned the GSTIN of "ABB India Limited," a legally distinct entity, instead of the correct GSTIN of the actual recipient, "M/s. ABB Global."
• Consequence: Due to this error, the tax paid by Wipro on these supplies did not reflect in the FORM GSTR-2A of the correct recipient (ABB Global), thereby preventing them from availing the rightful ITC.
• Petitioner's Action: Wipro had sent a letter dated 06.09.2021 to the authorities requesting a resolution, which was not acted upon.

4. Arguments

• Petitioner's Arguments (M/s Wipro Limited):

  • The error in mentioning the recipient's GSTIN was a bona fide, inadvertent mistake.
  • The case is squarely covered by CBIC Circular No. 183/15/2022-GST dated 27.12.2022, which was issued to provide a procedure for rectifying such discrepancies in ITC between FORM GSTR-3B and GSTR-2A for the initial GST implementation years (FY 2017-18 and 2018-19).
  • They sought a direction from the Court to the tax authorities to apply the said Circular to their case to resolve the issue.

• Respondents' Arguments (GST Department):

  • The Department contended that the Circular was not applicable to the petitioner's case and that the petition lacked merit and should be dismissed.

• Recipient's Stance (M/s. ABB Global):

  • ABB Global supported Wipro's petition, filing a statement of objections that admitted and confirmed the facts regarding the mismatch in the GSTIN.

5. Court’s Reasoning

• Bona Fide Error: The Court examined the invoices and concluded that the incorrect mention of the GSTIN of ABB India Limited instead of ABB Global was clearly a bona fide error that occurred due to "unavoidable circumstances" and "sufficient cause."
• Applicability of Circular: The Court held that Circular No. 183/15/2022-GST was "directly and squarely applicable" to the facts of the case. The purpose of the Circular is to provide a remedy for such bona fide and inadvertent mistakes made during the initial years of GST. The specific scenario of declaring a supply with the wrong GSTIN of the recipient is explicitly covered in the circular.
• Justice-Oriented Approach: Although the Circular only pertains to FY 2017-18 and 2018-19, the Court noted that identical errors had been committed by Wipro for FY 2019-20. To prevent further litigation and ensure justice, the Court adopted a "justice oriented approach" and extended the benefit of the Circular to FY 2019-20 as well.
• Conclusion: Given the nature of the error and the clear applicability of the clarificatory circular, the Court found it "just and proper" to direct the GST authorities to follow the procedure prescribed therein to resolve the issue for all three financial years.

6. Statutory References

• Constitution of India: Articles 226 and 227.
• Central Goods and Services Tax (CGST) Act, 2017:
  • Section 16: Eligibility and conditions for taking Input Tax Credit.
  • Section 16(4): Time limit for availing ITC.
  • Section 168(1): Power of the Board to issue instructions and circulars.
• Forms: FORM GSTR-1, FORM GSTR-2A, FORM GSTR-3B.

7. Precedents Cited

• The judgment does not cite any prior court cases (judicial precedents).
• The decision is primarily based on the interpretation and application of CBIC Circular No. 183/15/2022-GST dated 27.12.2022, which serves as the key administrative guideline for the resolution of the issue.