Voluminous E-Way Bill Analysis Prompts Interim GST Protection: Gujarat HC

Ford India Private Limited Vs Union of India & Anr. (Gujarat High Court)

Summary: The Gujarat High Court considered two writ petitions in which M/s Ford India Private Limited challenged show-cause notices and Orders-in-original issued under section 74 of the Central Goods and Services Tax (CGST) Act, 2017. The petitioner submitted that the adjudicating authority had failed to derive its conclusion from the material supplied pursuant to the show-cause notices and had itself observed that the data contained in the e-way bills for Financial Year 2018-19 was difficult to understand as no mechanism was provided. According to the petitioner, the proceedings emanated from Audit Queries of the Director General of Audit (Central), Ahmedabad dated 14.06.2023, 15.06.2023 and 03.08.2023 alleging suppression in taxable value compared with e-way bills. It was contended that section 61 of the CGST Act required scrutiny of returns and action concerning discrepancies or inconsistencies, but the prescribed procedure had not been followed before show-cause notices alleging wrongful availment of Input Tax Credit were issued under section 74.

The petitioner also disputed invocation of the extended five-year period, contending that there was no suppression, and stated that it had not been asked to provide additional invoices or e-way bills. The demands were stated to be Rs.4,57,61,572/- in SCA No.1344/2026 and Rs.19,36,67,23,154/- in SCA No.1351/2026. The respondents opposed the petitions, contending that the petitioner had failed to provide adequate details, that discrepancies remained in the e-way bills and that under section 155 of the CGST Act the burden lay upon the petitioner to explain that ITC had not been wrongly availed beyond entitlement. They further submitted that compliance with section 61 read with Rule 99 of the GST Rules, 2017 was not a prerequisite to invocation of section 74.