Cirrus Chemicals Pvt Ltd. Vs State of Rajasthan (Rajasthan High Court)
Summary: The Rajasthan High Court allowed the writ petition filed by Cirrus Chemicals Pvt Ltd. challenging the ex-parte Order-in-Original dated 24.02.2025, whereby a demand of Rs.8,28,888/- had been raised, as well as consequential recovery proceedings initiated through notice dated 25.06.2025 under Section 79(1)(c) of the RGST Act, 2017, pursuant to which Rs.15,16,141/- had been recovered from the petitioner’s bank account. The petitioner, engaged in production of liquefied hydrogen gas, challenged the Order-in-Original issued in Form GST DRC-07, which was based upon an alleged mismatch between Input Tax Credit availed in GSTR-3B and credit reflected in GSTR-2A.
The petitioner contended that the Show Cause Notice dated 21.11.2024 and reminder-cum-personal-hearing notice dated 06.02.2025 were neither received nor made available on the GST portal in a manner enabling it to respond. It therefore filed no reply and attended no hearing. According to the petitioner, it discovered those notices only when the Order-in-Original dated 24.02.2025 was uploaded. It further contended that the alleged ITC discrepancy was capable of documentary reconciliation, but no opportunity had been provided to place such material on record. After the order, it filed a rectification application dated 01.03.2025 and reminder dated 17.07.2025. During pendency of rectification, Rs.15,16,141/- was recovered from its bank account on 25.06.2025. The petitioner also stated that no copy of the notice in Form GST DRC-13 issued to the bank had been furnished to it.
