Section 42 of the CGST Act, 2017 –– Mismatch of ITC —- The petitioner challenged order-in-original dated 30.03.2022. The revenue claimed that the ITC claimed by the petitioner was a wrong claim because, there was a complete mismatch between the supplier and the petitioner who was in the receiving end, as the supplier, has not paid the outward tax. Accordingly a SCN was issued and order was passed on. The court observed that after receipt of the SCN, if at all the petitioner wants to rectify the mismatch between the petitioner and the supplying dealer, the supporting documents to substantiate that the output tax had been paid by the supplying dealer at their end should have been procured and filed along with the reply submitted by the petitioner, which they failed to do. Therefore, the technical reason that under Section 42(3) it should have been communicated at the earliest point of time and therefore the SCN cannot be treated as communication intimating the mismatch between the supplier and the petitioner cannot be countenanced. The Court is not inclined to entertain this writ petition and it is liable to be dismissed.

Held that:- The Hon’ble High Court dismissed the writ petition with a liberty to challenge the impugned order before the appellate authority in the manner known to law.