Bagga Vet Pharma Vs State of Punjab and another (Punjab and Haryana High Court)
The petition was filed under Articles 226/227 of the Constitution of India seeking quashing of an order dated December 30, 2025, passed by the Joint Commissioner, Patiala. The petitioner, a proprietorship engaged in trading veterinary and poultry feed supplements, challenged the order on the grounds that it was passed without considering its replies and beyond the scope of the show cause notice.
For the financial year 2020–21, the department issued a notice alleging failure to reverse Input Tax Credit (ITC) on common inputs used for taxable and exempt supplies. The petitioner responded, and after considering the reply, no further proceedings were initiated.
For the financial year 2021–22, a scrutiny notice raised similar issues. The petitioner replied, stating that ITC was availed only for taxable supplies and submitted supporting documents. However, a show cause notice (DRC-01) was later issued, stating that the reply was unsatisfactory and that the matter was “sub-judice.” The petitioner filed detailed replies, relying on CBIC circulars and providing reconciliations of ITC reversal.
Despite these submissions, the impugned order confirmed the demand, stating that the issue remained “sub-judice” and the petitioner’s reply was unsatisfactory. The petitioner argued that this reflected non-application of mind, as no issue was actually pending adjudication and prior proceedings on similar issues had been dropped.
