SS Enterprises Vs Office of Commissioner Central Tax Delhi West And Anr (Delhi High Court)
In a significant ruling that underscores adherence to statutory appeal mechanisms, the Delhi High Court has directed SS Enterprises to file an appeal against a penalty of Rs. 36,05,299/- imposed by the Additional Commissioner of Central Tax, CGST Delhi West Commissionerate. The High Court, hearing a petition filed under Articles 226 and 227 of the Constitution of India, declined to intervene directly at this stage, emphasizing that the impugned order is appealable under Section 107 of the Central Goods and Service Tax (CGST) Act, 2017.
The case centers on allegations against SS Enterprises for purportedly receiving “goods-less invoices” from two firms, M/s. Shivaay Trading and Satyam Associates, both reportedly linked to an individual named Ms. Aaarti Kapoor. The total Input Tax Credit (ITC) allegedly availed through these “fake and fraudulent firms” and “goods-less invoices” is a substantial Rs. 172 Crores.
Disputed Hearing Notice and Procedural Compliance
A key contention raised by SS Enterprises, the petitioner, was the alleged non-receipt of the personal hearing notice. However, a closer examination of the petitioner’s own averments in the writ petition contradicted this claim. The petition itself stated that the notice for personal hearing, dated January 9, 2025, was dispatched on January 17, 2025, and received by the petitioner on the evening of January 18, 2025. While the petitioner contended that the first two hearing dates (January 13 and January 16, 2025) had already lapsed, the notice was admittedly received in time for the final scheduled hearing on January 21, 2025.
