ITC Can’t Be Denied Merely Due to Supplier’s Retrospective GST Cancellation Without Providing Opportunity to Prove Receipt of Goods | HC

Case Details: APN Sales and Marketing v. Union of India - [2024] 164 taxmann.com 789 (Delhi)

Judiciary and Counsel Details

• Vibhu Bakhru & Sachin Datta, JJ.
• Pranay Jain & Karan Singh, Advs. for the Petitioner.
• Ms Neha Rastogi, SPC, Animesh Rastogi, Vibhv Singh & Rajeev Aggarwal, Advs. for the Respondent.

Facts of the Case

The petitioner received a notice from the department proposing demand of Rs. 17,43,356 along with interest and penalty. It was alleged that the petitioner had availed excess Input Tax Credit. It submitted response to the notice along with invoices of supplier in question.

The Adjudicating Authority passed an order and raised demand of Rs.18,30,522. It filed writ petition against the demand and contended that the order was passed merely on the ground that supplier’s registration was cancelled retrospectively.

High Court Held

The Honorable High Court noted that the petitioner submitted invoices along with response which were issued by the supplier in question. The Authority was required to examine the documents submitted by the petitioner and opportunity of being heard was also required to be given before passing the order. However, the impugned order was passed without giving any reasoned finding and the same was liable to be set aside. The Court also directed the Authority to decide the matter afresh after giving opportunity of being heard to the petitioner.