The Delhi High Court restored matter to the Proper Officer to adjudicate show cause notice ( SCN ) as there was no excess claim of input tax credit ( ITC ).
The Petitioner impugned the 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 ( CGST Act ).
The counsel for the petitioner submitted 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.
The counsel submitted 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.
A Division Bench of Justices Sanjeev Sachdeva and Ravinder Dudeja observed that “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.”
“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” the Court said.
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