Disregarding Statements due to GST Portal Glitch: Delhi HC remands Retrospective GST Cancellation for Reconsideration [Read Order]

In a recent ruling of Delhi High Court the impugned GST demand order was set aside, further the matter was remanded to the adjudicating authority for fresh consideration for ignorance of the statements of the assessee.

The petitioner Ananta Exim filed a petition impugning order dated 17.04.2024 passed under Section 73 of the Delhi Goods and Services Tax Act ( DGST ) and the Central Goods and Services Tax Act, 2017. It was issued confirming the demand of ₹89,83,380/- including interest and penalty for the financial year 2018-19.

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The impugned order was passed pursuant to a Show Cause Notice ( SCN ). The SCN was issued on the ground that the Input Tax Credit ( ITC ) claimed by petitioner was greater than the amount declared by petitioner’s supplier. It was also alleged that the petitioner had availed ITC in respect of supplies from taxpayers who had not paid tax on their outward supplies to the petitioner.

The counsel for the petitioner submitted that the retrospective cancellation of GST registration of the suppliers does not imply that they did not pay taxes. The petitioner did not select for personal hearing due to a glitch in the system which prohibits the taxpayer from selecting the option of personal hearing.

The petitioner’s reply was rejected by the adjudicating authority by simply claiming that it was not satisfactory.Therefore the impugned order being unreasoned is set aside.

The respondent’s counsel stated that impugned order has been passed in similar terms for other cases that were remanded to the adjudicating authority for fresh consideration.

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The division bench of Delhi High Court comprising Justice Vibhu Bakhru and Justice Sachin Datta observed the Adjudicating Authority shall pass the order after giving the petitioner an opportunity for personal hearing. Thus the Impugned order was set aside and the matter was remanded to the Adjudicating Authority for fresh consideration.

Therefore the petition along with the pending application was disposed of.

To Read the full text of the Order CLICK HERE

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