Introduction

The petitioner, Future Generali India Insurance Company Limited, challenged an Order-in-Original dated 08.04.2024 passed by the Additional Commissioner of CGST and Central Excise, Navi Mumbai, whereby a demand of ₹3,61,29,374/- along with applicable interest was confirmed on account of the alleged incorrect distribution of Common Input Tax Credit (Common ITC).

Instead of filing a statutory appeal under Section 107 of the CGST Act, the petitioner approached the Bombay High Court under Article 226 of the Constitution. The principal contention was that the very same methodology adopted by the petitioner for distribution of Common ITC had already been accepted by the Department itself in subsequent assessment years. The petitioner relied upon favourable departmental orders passed for Assessment Years 2017-18, 2020-21 and 2021-22, wherein identical issues had been decided in its favour.