Prince Diamond Jewellers Private Limited Vs Goods And Service Tax Officer (Delhi High Court)
Delhi High Court has allowed M/s Prince Diamond Jewellers Private Limited to file an appeal against an order raising an excess Input Tax Credit (ITC) demand of Rs. 7,88,611/-, including interest and penalty, despite the statutory limitation period for appeals having expired. The court’s decision was influenced by the assessee’s claim of not having received the initial show cause notice (SCN) or the subsequent impugned order until March 2025.
The petitioner challenged an order dated December 14, 2023, which was issued following an SCN dated September 24, 2023. The demand was raised on the premise of an alleged excess claim of ITC based on an analysis of the petitioner’s Goods and Service Tax (GST) records.
According to the petitioner, they were unaware of the SCN and consequently failed to file a reply. The impugned order, raising the substantial demand, was then passed by the Goods and Service Tax Officer. Prince Diamond Jewellers stated that they only became aware of both the unsigned SCN and the impugned order on March 13, 2025, when a partner visited the Respondent’s office for an unrelated matter. While the petitioner alleged the SCN was uploaded on an “Additional Notices Tab” on the department’s portal, they could not provide a screenshot to substantiate this claim.
