ITC Reversed Late At Night During Search Proceedings Was Not Voluntary & to Be Returned to Taxpayer | HC

Case Details: Santosh Kumar Gupta v. Commissioner, Delhi Goods & Services Tax Act - [2024] 158 taxmann.com 226 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • A.K. Babbar & Surender Kumar, Advs. for the Petitioner.
  • Rajeev Aggarwal & Ms Shilpa Singh, Advs. for the Respondent.

Facts of the Case

The petitioner was engaged in the business of manufacturing and trading of electrical goods. The department conducted search at his business premises and the petitioner was compelled to reverse ITC amounting to Rs. 22,14,226. He filed writ petition seeking refund of ITC as he was compelled to reverse ITC.

High Court Held

The Honorable High Court noted that the petitioner had filed FORM GST DRC-03 but there was no acknowledgement of receipt by the Department by issuing FORM GST DRC-04. Also, the petitioner had filed writ petition after one month from recording of statement and same was being retracted.

The Court also noted that the petitioner may have reversed ITC in intimidating circumstances and he would not reverse ITC in normal course late at night. Therefore, the contention of department that reversal was voluntary was not acceptable and the Court directed the department to restore ITC.