Section 6(2)(b) Bar on Parallel GST Proceedings Applied to ITC Dispute: Himachal Pradesh HC

H.M. Steels Ltd. Vs Union of India & Ors. (Himachal Pradesh High Court)

The Himachal Pradesh High Court disposed of the writ petition filed by H.M. Steels Ltd. Vs Union of India & Ors., concerning DRC-01 summary show cause notices issued by the State authorities and a show cause notice issued by the Central Authority relating to denial of input tax credit (ITC). The petitioner challenged the notices and sought directions against further proceedings, contending that the notices were issued without issuing ASMT-10 and without appreciating that tax had already been paid to the suppliers and that the petitioner possessed documents required for claiming ITC. The petitioner stated that it would be satisfied if the competent authorities were directed to reconsider its claim and objections, along with relevant documents, specifically regarding whether payments including GST were actually made to the suppliers, whether the transactions and purchases were genuine and supported by valid documents, whether the purchases occurred before or after cancellation of the suppliers’ registrations, and whether the petitioner complied with statutory obligations concerning verification of supplier identity. The petitioner further sought ITC if the purchases were found genuine, properly documented, and made before cancellation of the suppliers’ registrations.

The Learned Advocate General and Mr. Vijay K. Arora, Senior Counsel, submitted that if the petitioner filed a fresh response with relevant documents, the competent authority could decide the matter within a reasonable time.