In a recent case, the Delhi High Court while observing the allegation with respect to irregular availment of Input Tax Credit the bench directed to reply to the Show Cause Notice (SCN) issued by the sales tax officer within 30 days.
The petitioner Manpowergroup Services India Pvt Ltd filed the writ petition by challenging the show cause notice issued by the sales tax officer regarding the irregular availability of input tax credit for the financial year 2018-19, 2019-20 and 2020-21.
Counsel for petitioner submitted that specific details have not been mentioned in the said notice with regard to the alleged mis-match or irregular availment. Although a time was sought from the Proper Officer for responding to the show cause notice. However, he has not acceded to the said request.
further submits that apart from the audit observation, no show cause notice has been issued to the petitioner and as such there is no clarity as to the discrepancy alleged by the department.
Counsel for respondent submitted that limitation for adjudicating show cause notice for the financial year 2018-19 ends on 30.04.2024.Further the counsel submits that submits that in case any specific query is made by the petitioner, the Proper officer shall duly provide the said information keeping in view the timeline for adjudication.
After analyzing the facts and arguments of both parties, a division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja disposed of the petition by directing the petitioner to file a response to the show cause notice for the financial year 2019-20 and 2020-21 within 30 days from today.
Ms. Priyanka Rathi, Mr. Ashwini Chandrasekharan and Mr. Abhishek Jain, Advocates appeared for the petitioner and Mr. Rajiv Aggarwal, ASC with Ms. Samridhi Vats, Advocate appeared for the respondent.
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