Infiniti Retail Limited Vs Union of India & Ors (Delhi High Court)
Delhi High Court has dismissed a writ petition filed by Infiniti Retail Limited, challenging a substantial Goods and Services Tax (GST) demand, interest, and penalties totaling over Rs. 100 crores. While acknowledging that the Adjudicating Authority (AA) may not have fully complied with its prior directions, the High Court opted not to remand the matter but instead directed the petitioner to pursue its statutory appellate remedy. In a significant relief, the court waived the mandatory 10% pre-deposit requirement for a major portion of the disputed Input Tax Credit (ITC) demand, amounting to Rs. 77.36 crores.
The petition by Infiniti Retail Limited (Croma) was filed under Article 226 of the Constitution, challenging an Order-in-Original dated February 3, 2025, passed by the Additional Commissioner, CGST Delhi, West Commissionerate. This order raised demands on various grounds, including:
- Confirmation of the invocation of the extended period of limitation under Section 74(1) of the CGST Act, 2017, for CST payable.
- Confirmation and recovery of wrongly availed ITC (CGST, SGST & IGST) collectively amounting to Rs. 91,59,91,060/-.
- Confirmation and recovery of interest under Section 50 of the CGST Act, 2017, on the above ITC amount.
- Imposition of penalty equal to the ITC amount under Section 74(1) read with Section 74(9) and Section 122 of the CGST Act, 2017.
- Confirmation and recovery of short payment of tax (CGST, SGST & IGST) collectively amounting to Rs. 16,80,26,918/-.
- Confirmation and recovery of interest under Section 50 on the short payment of tax.
- Imposition of penalty equal to the short payment of tax under Section 74(1) read with Section 74(9) and Section 122 of the CGST Act, 2017.
- Confirmation and recovery of interest amounting to Rs. 19,31,640/- under Section 50 of the CGST Act, 2017.
Alleged Non-Compliance with Prior Court Directions
