In a recent ruling by the Delhi High Court, a Show Cause Notice dated 24.12.2023 proposing a demand against the taxpayer has been disposed of. The court clarified that it did not comment on the merits of the case. The taxpayer’s reply on the GSTIN portal was found to be insufficient, leading to the creation of a demand including penalty. Stay tuned for more insights on this case.
Facts
- The impugned Show Cause Notice dated 24.12.2023 proposing a demand of Rs. 7,02,71,577.00 against the petitioner has been disposed of.
- A demand including penalty has been created for the petitioner.
Arguments
- Show Cause Notice dated 24.12.2023 enclosed findings of Special Audit in Form GST ADT-04 without further reasons.
- Special Audit Report highlighted findings under headings like Re-availment of ITC as per Rule 42 and differences in records.
- SCN/DRC-01 with complete calculation of Tax/interest liabilities issued to taxpayer based on Special Audit by authorized Chartered Accountants.
Analysis
- The taxpayer has submitted his reply on the GSTIN portal.
- The taxpayer failed to properly reply/file explanation despite being given sufficient opportunities.
- The Proper Officer has opined that the taxpayer did not comply with the law within the prescribed period.
- The Court clarified that it did not consider or comment on the merits of either party’s contentions.
Decision
- Petition disposed in specific terms.
- All rights and contentions of parties reserved.
- Challenge to Notification No 56 of 2023 on time extension left open.
Case Title: FUTURE GENERALI INDIA INSURANCE COMPANY LIMITED Vs. GOODS AND SERVICE TAX OFFICER (GSTO) WARD 203 & ORS. (2024:DHC:4425-DB)
Case Number: W.P.(C)-7747/2024
