Delhi HC sets aside order of demand made u/s 73 of CGST Act without verifying proof of payments made through bank channel regarding ITC Claim [Read Order]

In a recent case, the Delhi High Court set aside the order of demand made under Section 73 of  Central Goods and Services Tax Act, 2017 without verifying the proof of payments made through the bank channel regarding the Input Tax Claim ( ITC ).

The  petitioner Amit Upadhyay filed the writ petition against the  demand created under section 73 of the Central Goods and Services Tax Act, 2017 and also challenged the Show Cause Notice issued by the respondent.

Counsel for petitioner submitted that Petitioner submits that Petitioner had filed a detailed reply dated 21.10.2023 responding to each of the points raised in the show cause notice.

He further submits that impugned order records that the taxpayer has not shown bank payment proof of the invoices and thus, the taxpayer has been held to be not eligible to claim the input credit.Although the representative of the petitioner had personally appeared however, he was not asked to produce any bank payment proof.

The bench observed that As per the  letter dated 03.12.2023 shows that petitioner was given an opportunity to personally appear and there was no requirement stipulated therein to produce any bank payment proofs. As per the petitioner, if given an opportunity, the petitioner shall be able to produce all proofs of payments made through the bank channel.

After analyzing the facts and arguments of both parties, a division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja set aside the order the matter is remitted to the Proper Officer for re-adjudication   and  also directs the petitioner  to produce all the relevant documents as inter-alia the clarification with regard to the HSN Code and also the proof of payment made through the banking channel before the proper officer.

Mr. Puneet Rai & Mr. Kapil Sharma, Advocates Advocates appeared for the petitioner and Mr. Rajeev Aggarwal, ASC with Ms. Samridhi Vats, Advocate  appeared for the respondent.

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