Harsh Khanna and Sons HUF Vs Assistant Commissioner (Delhi High Court)
Delhi High Court, in the case of M/s Harsh Khanna and Sons HUF vs. Assistant Commissioner, has declined to entertain a writ petition challenging an order denying Input Tax Credit (ITC) due to belated filing of GSTR-3B returns. The Court directed the assessee to pursue the statutory appellate remedy available under Section 107 of the Central Goods and Service Tax Act, 2017 (CGST Act).
The petitioner, M/s Harsh Khanna and Sons HUF, had approached the High Court under Articles 226 and 227 of the Constitution of India, seeking to quash a Show Cause Notice dated November 27, 2024, and a subsequent Order-in-Original dated February 25, 2025. The impugned order raised a demand of Rs. 70,45,630/- for ITC availed by the petitioner, citing violations of Sections 16(4), 16(5), and 16(6) of the CGST Act. Additionally, the order imposed interest of Rs. 2,01,218/- for delayed GSTR-3B filings for the FY 2020-21 and a penalty of Rs. 7,04,563/- for wrong availment of ITC.
The core of the dispute revolved around the petitioner’s GSTR-3B returns for the financial year 2020-21, which were due by November 30, 2021, but were filed on December 14, 2021. This 14-day delay led the Assistant Commissioner to disallow the ITC, as Section 16(5) of the CGST Act sets a deadline of November 30 for filing returns to avail ITC.
