The HC remanded case back for reconsideration as document (Annexure B) mentioned in SCN outlining the excess credit claim was not provided to the company.
18 Jun, 2024
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A recent court case where a company (petitioner) challenged a demand notice issued by the government for claiming excess Input Tax Credit (ITC) under the Central Goods and Services Tax Act (CGST Act).
Background:
- The company received a show cause notice (SCN) demanding Rs. 9,04,200/- for excess ITC claimed.
- The SCN mentioned an Annexure-B containing details of the alleged excess claim, but the company never received a copy.
- The company requested a copy of Annexure-B to file a reply but never received it.
Company's Argument:
- The company argued they couldn't respond to the SCN properly because they never received the Annexure-B mentioned in the notice.
- Without this information, they couldn't prepare a proper defense.
Government's Argument:
- The government claimed there was no separate Annexure-B.
- They argued the details were included in a table within the SCN itself.
- The company failed to respond to the SCN despite receiving multiple reminders.
Court's Decision:
- The court sided with the company, highlighting the following:
- The SCN explicitly mentioned an Annexure-B that the company never received.
- This lack of information prevented the company from filing a proper response.
- The court set aside the demand order and directed the authorities to:
- Re-issue the SCN without any mention of Annexure-B.
- Grant the company a fresh opportunity to respond within two weeks.
- Hold a personal hearing before passing a new order.
Case Law-Shree Padma Industries Versus Union of India
Citation-2024 TAXONATION 1036 (DELHI)
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