Vishal Kumar Arya Vs Assistant Commissioner ( Calcutta High Court)
Opportunity of hearing to be granted before denying ITC where sufficient documents are available to show genuineness of the transactions
The Hon’ble Calcutta High Court in Vishal Kumar Arya v. Assistant Commissioner, State Tax, Ultadanga Charge & Ors. [M.A.T. No.2004 of 2022 with I.A. No. CAN 1 of 2022 dated January 20, 2023] directed the assessee, to treat the demand order as Show Cause Notice (“SCN”) and submit a reply along with all supporting documents, wherein, the assessee had sufficient documents to show genuineness of the transactions, in a matter denying Input Tax Credit (“ITC”) to the assessee on the ground that, the Goods and Services Tax (“GST”) Registration of the other end dealer was cancelled. Held that, opportunity should be granted to the assessee and decision should be taken on merits after considering the documents placed.
Facts:
This intra court appeal has been filed by Vishal Kumar Arya (“the Appellant”) challenging the order dated November 21, 2022 in W.P.A. No. 21605 of 2022 (“the Impugned Order”) which was filed challenging Order-in-Original dated June 21, 2022 (“the OIO”) passed by the Revenue Department (“the Respondent”) under Section 74(9) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).
Initially, an SCN was issued by the Respondent to which the Appellant submitted its reply and the date of personal hearing was fixed to be June 20, 2022 however, the Appellant did not appear for the same. The Appellant on June 21, 2022 submitted a representation tendering unconditional apology. However, the OIO was passed denying the Appellant to claim ITC on the ground that the GST Registration of the other end dealer was cancelled.
The Appellant submitted that there were sufficient documents to show that the transactions done by them are genuine.
Issue:
Whether the Appellant can be allowed to claim ITC despite the fact that the GST Registration of other end dealer was cancelled?
Held:
The Hon’ble Calcutta High Court in M.A.T. No.2004 of 2022 with I.A. No. CAN 1 of 2022 held as under:
