Mrishi Marcndey India Ltd Vs Sales Tax Officer
Date: May 7, 2024
Subject Matter
Excess claim of ITC: Re-Adjudication ordered
Summary
The petitioner challenged an order dated 21.12.2023, which disposed of a show cause notice proposing a demand of Rs. 46,41,15,492 against the petitioner under Section 73 of the Central Goods and Services Tax Act, 2017. The petitioner contended that they had evidence to support that there was no excess claim of Input Tax Credit and requested time to file a reply. The order was passed solely on the ground that there was no response received from the petitioner. The court set aside the impugned order and restored the show cause notice on the file of the proper officer, granting the petitioner one opportunity to file a response.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
Petitioner impugns order dated 21.12.2023, whereby the impugned show cause notice dated 26.09.2023 proposing a demand of Rs. 46,41,15,492/- against the petitioner has been disposed of and demand including penalty has been raised against the petitioner. The order has been passed under Section 73 of the Central Goods and Services Tax Act, 2017 [hereinafter referred to as, “the Act”].
2. Learned counsel for the petitioner submits that in response to Show Cause Notice dated 26.09.2023, petitioner on 25.10.2023, requested for some time to file a reply. In the response dated 25.10.2023, petitioner contended that it had concrete evidence to support that there was no excess claim of Input Tax Credit, and sought time on the ground that the Authorized Representative of the petitioner who was handling the accounts was not available during the said period.
3. Leaned counsel submits that there is sufficient material available with the petitioner to substantiate that there is no amount due from the petitioner. It is further contended that the GST Registration of the petitioner was cancelled vide order 24.06.2020 and in the said cancellation order, there was “nil” demand raised against the petitioner.
4. Issue notice. Notice is accepted by the learned counsel appearing for the respondent. With the consent of the parties, the petition is taken up for final disposal today.
5. Perusal of the order dated 21.12.2023 shows that the same has been passed solely on the ground that there was no response received from the petitioner. Petitioner has annexed the copies of certain account statements as well as invoices to contend that the petitioner had not availed Input Tax Credit, contrary to its entitlement.
6. Keeping in view the peculiar facts and circumstances of the case, we are of the view that one opportunity should be granted to the petitioner to file a response to the Show Cause Notice. Thereafter, the Show Cause Notice shall be re-adjudicated in accordance with law.
7. In view of the above, the impugned order dated 21.12.2023 is set aside. The Show Cause Notice is restored on the file of proper officer.
8. Petitioner shall file a response to the Show Cause Notice within a period of two weeks from today. Thereafter, the Proper Officer shall adjudicate the Show Cause Notice in accordance with the law within the time prescribed under Section 75 (3) of the Act after giving an opportunity of a personal hearing.
9. It is clarified that this Court has neither considered nor commented on the merits of the contentions of either party. All rights and contentions of the parties are reserved.
10. Petition is disposed of in the above terms.