Denial of ITC under GST: Patna High Court quashes Ex-Parte Order since Natural Justice Principles were not followed [Read Order]

Denial of ITC - GST - ITC - Patna High Court - Taxscan

While quashing the ex-parte order, the Patna High Court held that Input Tax Credit can not be denied for reasons of delay in filing of the respective returns.

The petitioner, Pramod Khad Bhandar assailed the assailed the ex parte order passed under section 73 of the state act and also for quashing of the summary of order issued in form GST DRC-07 issued by the respondent under section 73(9) of the State Act whereby and where under the input tax credit claimed by the petitioner qua the taxable period of June 2018 has been rejected and denied for reasons of delay in filing of the respective returns in terms of section 16 (4) of both the acts.

According to the Revenue, petitioner has an equally alternative efficacious remedy of filing an appeal under the provisions of the Bihar Goods and Services Tax Act, 2017.

The division bench headed by Chief Justice, Sanjay Karol and Justice S. Kumar quashed the order on the grounds of violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case and the order passed ex parte in nature, does not assign any sufficient reasons even decipherable from the record, and how the officer could determine the amount due and payable by the record assessee. The court quashed the impugned order passed by the Assistant Commissioner of State Taxes under Section 73 of the State Act and a summary of the order issued in form GST DRC-07.

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