The Delhi High Court directed re adjudication as the claim of excess Input Tax Credit (ITC) was denied without stating reason. The Court directed the proper officer to consider the reply and decide the matter.
Safe Fly Aviation Services Private Limited, the petitioner challenged the order whereby the impugned Show Cause Notice proposing a demand of Rs.2,92,00,768.00 against the Petitioner has been disposed of and a 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.
Counsel for Petitioner submitted that Petitioner had filed a detailed reply dated 20.10.2023, however, the impugned order dated 30.12.2023 does not take into consideration the reply submitted by the Petitioner and is a cryptic order.
Perusal of the Show Cause Notice shows that the Department has given separate headings i.e., under declaration of output tax; excess claim of ITC; ITC to be reversed on non-business transactions and exempt supplies; under declaration of ineligible ITC and ITC claimed from cancelled dealers, return defaulters and tax nonpayers. To the said Show Cause Notice, a detailed reply was furnished by the Petitioner giving disclosures under each of the heads.
In the order it merely states “And whereas, a notice for personal hearing was also issued to the taxpayer along with notice DRC 01 to explain their reply/objections against proposed amount of tax and interest . And whereas, the taxpayer has filed his/her reply on the Portal on scrutiny of the documents along with supporting documents was/were not found satisfactory.” The Proper Officer has opined that the reply is not satisfactory.
While allowing the division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja remitted the matter to the Proper Officer for re-adjudication. Mr. Karan Aggarwal and Mr. Amarinder Singh Baweja appeared for the petitioner. Mr. Rajeev Aggarwal, ASC with Mr. Prateek Badhwar, Ms. Shaguftha H. Badhwar, Ms. Samridhi Vats appeared for the respondent.
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