Assessment Pending Prior To Resolution Cannot Be Quantified After Approval Of Resolution Plan: Allahabad High Court

The Kerala High Court quashed a demand order for wrongful availment of ITC, ruling that the mistake was inadvertent and technical. The court found that the taxpayer had claimed Input Tax Credit (ITC) on a transaction that did not meet the required conditions, but the error was unintentional. In light of this, the court ruled that no demand could be imposed for the alleged wrongful availment, emphasizing that not all technical mistakes warrant penalties. The decision highlights the need for tax authorities to consider the context of errors and differentiate between genuine mistakes and fraudulent practices, ensuring fairness in GST enforcement.