Khemka Aviation Private Limited Vs Sales Tax Officer Class II/Avato Ward 1 & Ors (Delhi High Court)
The petitioner challenged an order dated April 30, 2024, issued under Section 73 of the CGST/DGST Act for the financial year 2018-19, arguing that the order is unreasoned and disregards the petitioner’s response. The order, which followed a Show Cause Notice (SCN) dated December 13, 2023, demanded payment due to allegedly inadmissible input tax credit (ITC) related to motor vehicle services and airline travel. The petitioner had asserted that it did not claim ITC on these services, providing supporting documents. However, the Adjudicating Authority rejected the response without adequate explanation. The court noted a pattern of such unreasoned orders being issued just before the expiration of the statutory limitation period, potentially to secure demands that might not hold up under scrutiny. The court has issued notice to the respondents and requested affidavits detailing the frequency and officer-wise breakdown of similar orders, along with how many have been challenged and set aside as unreasoned. The impugned order is stayed pending further proceedings, with the next hearing scheduled for August 29, 2024.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The petitioner has filed the present petition impugning an order dated 30.04.2024(hereafter the impugned order) on several grounds, including, that it is an unreasoned order.
