Kerala High Court: Bona Fide Error in Revised TRAN Forms Can’t Deny Transitional ITC

The Kerala High Court has held that a bona fide mistake in revised TRAN-1 and TRAN-2 forms cannot justify the denial of transitional Input Tax Credit when no tax evasion is alleged.

Justice Ziyad Rahman A. A. said courts should adopt a liberal approach under Article 226 in such matters.

The petitioner had disclosed only incremental credit while revising forms pursuant to directions of the Supreme Court of India. Authorities treated the revised forms as superseding the originals and denied the credit.

The Court quashed the assessment order and recovery notice, granting relief to the assessee.

[Pinnacle Motor Works Pvt. Ltd. v. Deputy Commissioner]