Case Law Details
Apar Fragrances Vs Union of India (Rajasthan High Court)
In a recent case before the Rajasthan High Court, Apar Fragrances has raised significant concerns regarding the Goods and Services Tax (GST) recovery process in a dispute with the Union of India. The court’s intervention sheds light on critical issues within the GST framework.
The petitioner’s counsel argued that the order dated 16th August 2023, issued by the authority (Annexure – 10), failed to consider the petitioner’s assertion of having made payments to the supplier through a banking channel. It was emphasized that the authority primarily relied on form GSTR – 2A of the supplier, neglecting the petitioner’s plea.
Drawing parallels to a similar case, MAT 1218/2023: Suncraft Energy Private Limited & Anr. Vs. The Assistant Commissioner, State Tax Ballygunge Charge & Ors., decided on 2nd August 2023, in the Calcutta High Court, the petitioner’s counsel argued that certain norms must be followed before passing such orders. The Calcutta High Court, in the aforementioned case, highlighted the necessity for establishing facts about missing dealers, closure of business by the supplier, or the supplier lacking adequate assets.
While the respondents’ counsel suggested that the petitioner should pursue alternative remedies, such as appealing against the impugned order, the court found merit in the petitioner’s submissions.
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