The Delhi High Court has recently issued a significant judgment regarding the dispute over ITC reversal. The case involves the review of a Show Cause Notice where the Proper Officer failed to consider the petitioner’s plea regarding the reversal of erroneously availed ITC in accordance with the law. The Court’s analysis focused on this specific issue, providing clarity and direction for further re-adjudication. Stay informed about the latest developments in taxation law with this insightful case summary.
Arguments
- The reply uploaded by the taxpayer was incomplete
- It was not duly supported by adequate documents
- The reply was unable to clarify the issue
Analysis
- The taxpayer’s filing on 30.12.2023 was deemed unsustainable.
- The reply dated 10.10.2023 by the Petitioner was detailed and supported, leading to the setting aside of the earlier decision.
- The Show Cause Notice has been sent back to the Proper Officer for re-adjudication.
- The petitioner contended that ITC was mistakenly taken twice in TRAN-1 and was duly reversed in the following financial year with interest.
- The Proper Officer did not take into account the petitioner’s plea regarding the ITC reversal.
- This Court has not considered or commented on the merits of the arguments presented by either party.
- The judgment’s focus is on a specific aspect of the case rather than on the overall merits.
- The Court’s analysis has been limited to a particular issue without delving into the broader contentions of the parties.
Decision
- The Proper Officer will re-adjudicate the Show Cause Notice after providing an opportunity in accordance with the law within the specified period.
- All rights and contentions of the parties are reserved.
- The petition is disposed of with the conditions mentioned.
- The challenge to Notification No. 9/2023 regarding the initial extension of time is left open for further examination.
- The Proper Officer will also review the petitioner’s contention about the reversal of erroneously availed ITC TRAN-I in accordance with the law.
- The petitioner has 30 days to file a further reply to the Show Cause Notice.
Case Title: CHEMROW INDIA PRIVATE LIMITED THROUGH ITS DIRECTOR Vs. COMMISSIONER OF DELHI GOODS AND SERVICE TAX AND OTHERS (2024:DHC:3761-DB)
Case Number: W.P.(C)-6503/2024
