MARUTHENGAL MOIDEEN & ORS. v. STATE TAX OFFICER & ORS.

Introduction

This judgment reaffirms the principle laid down by the Kerala High Court in Rejimon Padickapparambil Alex v. Union of India, namely that the electronic credit ledger under the GST regime functions as a unified pool of funds with separate compartments for IGST, CGST, and SGST. The Court held that mere availment of Input Tax Credit (ITC) under the wrong tax head, where sufficient credit existed in the electronic credit ledger and the credit was ultimately utilised for payment of GST, does not amount to wrongful availment of ITC warranting proceedings under Section 73 of the CGST Act.

Background of the Case

The petitioners were registered taxpayers under the GST Act.