Yervik Hindustan Exports INC. Vs Union of India and others (Punjab and Haryana High Court)
The Punjab and Haryana High Court examined the validity of an assessment order passed against the petitioner for alleged fraudulent availment of Input Tax Credit (ITC) for the financial year 2017–18. A show cause notice dated 31.07.2024 was issued, alleging wrongful passing of ineligible ITC. The petitioner submitted a reply dated 16.10.2024 denying the allegations. However, the adjudicating authority passed an order dated 07.01.2025 stating that no reply had been filed.
During proceedings, the revenue admitted that the petitioner had indeed filed a reply, but it was not traceable on the GST portal and therefore was not considered while passing the order. The Court found that the assessment order had been passed without application of mind and in violation of principles of natural justice, as the petitioner’s response was ignored.
Accordingly, the Court set aside the impugned assessment/adjudication order and also quashed consequential actions, including freezing of the petitioner’s bank account. The Court granted liberty to the revenue to pass a fresh order after duly considering the petitioner’s reply and following due process of law.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
