Harsh Khanna And Sons HUF Vs Union of India (Delhi High Court)
In Harsh Khanna And Sons HUF Vs Union of India, the Delhi High Court examined a writ petition challenging demand orders arising from alleged excess availment of Input Tax Credit (ITC) for FY 2018–19. A Show Cause Notice dated 03.01.2024 under Section 73 of the CGST Act proposed a demand of ₹45,81,000, primarily on account of excess ITC claimed in GSTR-3B compared to GSTR-2A. The adjudicating authority, through Order-in-Original dated 24.04.2024, confirmed disallowance of ITC amounting to ₹41,41,731 along with tax differences, penalties, and interest. The appellate authority, by order dated 17.01.2025, granted limited relief by waiving a small portion of the demand.
Before the High Court, the petitioner contended that the ITC in question had already been reversed and correctly re-claimed prior to issuance of the SCN. Although this argument had been raised earlier, it was rejected due to lack of documentary evidence. During the proceedings, the respondent’s counsel confirmed the correctness of the petitioner’s claim. In view of this confirmation, the Court quashed both the original and appellate orders and remanded the matter to the adjudicating authority for fresh consideration. The Court clarified that it had not examined the merits and directed disposal within 12 weeks.
