Trillion Lead Factory Private Limited Vs Superintendent of Central Tax (Supreme Court of India)
The case concerns a challenge to a show cause notice dated 17.12.2025 proposing cancellation of GST registration on the ground of alleged wrongful availment of Input Tax Credit (ITC). The petitioner contended that the notice lacked specific charges, was issued under the dictates of a superior authority (DGGI), and involved duplication of proceedings since the matter had already been investigated. The petitioner had also submitted replies to the notice and argued that parallel proceedings would amount to harassment.
Before the High Court, it was argued that the notice was vague and did not clearly set out the allegations. The respondent authorities contended that the petitioner had understood the charges based on the supporting documents annexed to the notice, which indicated violations relating to ITC availed from non-existent or non-operational suppliers under Rule 21(e) and Section 16 of the CGST Act. The petitioner had in fact submitted detailed replies addressing these allegations.
The High Court observed that although the show cause notice briefly stated the allegations, it was accompanied by supporting material, including communications from the DGGI. The petitioner’s replies demonstrated a clear understanding of the allegations, particularly regarding ITC availed from non-existent suppliers. In such circumstances, the Court held that no prejudice was caused to the petitioner. It further clarified that the Proper Officer was not acting under dictates but would independently consider the petitioner’s replies and pass an order in accordance with law. The High Court declined to interfere at the show cause stage and permitted the adjudication process to continue, directing that a decision be taken within two weeks.
