No Interference Required in Scrutiny Proceedings Which Are At the Stage of SCN | HC

Case Details: Tikona Infinet (P.) Ltd. v. Government of NCT of Delhi - [2023] 156 taxmann.com 647 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Prasad Paranape, Ms Bhavya Varma, Jasdeep Singh Dhilon & Rajpal Singh, Advs. for the Petitioner.
  • Rajeev Aggarwal & Aadish Jain, Advs. for the Respondent.

Facts of the Case

In the present case, the petitioner received a show cause notice on account of wrongful availment of the ITC. It filed writ petition against the initiation of proceedings and contended that ITC was transferred manually due to the transfer of the business since GST portal was not functioning and therefore, the transfer of ITC could not be filed on the portal.

High Court Held

The Honorable High Court noted that the petitioner was aggrieved by the impugned SCN as explanation had apparently not been accepted and the department initiated proceedings for recovery of the ITC. The Court further noted that it wouldn’t be appropriate to interfere in the proceedings since the present petition was at the stage of the impugned SCN.

However, the Court directed the concerned officer to consider all contentions of the petitioner including the directions issued by the Allahabad High Court and the Gujarat High Court in the similar cases of non-availability of Form GST ITC-02 on the online portal.