The dispute in M/s. D.Y. Beathel Enterprises v. State Tax Officer (Data Cell), Tirunelveli arose from the reversal of Input Tax Credit (ITC) under the Tamil Nadu Goods and Services Tax Act, 2017.

The petitioner, a registered dealer in raw rubber sheets, purchased goods from two registered suppliers, Charles and Shanthi, and paid the entire purchase consideration, including GST, through banking channels. The suppliers had filed their GST returns, and based on those returns, the petitioner availed Input Tax Credit.