Anil Kumar Vs Commissioner of CGST (Delhi High Court)
The Delhi High Court has set aside a GST rectification order in the case of Anil Kumar vs. Commissioner of CGST, ruling that the order was passed by the wrong authority and without a personal hearing. The petitioner had been subject to a demand of Rs. 6,65,415 for allegedly availing fraudulent Input Tax Credit (ITC) from a vendor who issued “goods-less invoices.” Following this, the Central Goods and Service Tax (CGST) Department issued an Order-in-Original.
The petitioner, believing the tax demand was incorrectly computed, filed a rectification application. However, this application was adjudicated and an order was passed by the Delhi GST Department, not the original authority, the CGST. The court found this to be impermissible. The Delhi GST Department’s standing counsel even conceded that, as a matter of procedure, a rectification application should be handled by the same department that passed the original order.
The court also noted that the petitioner was not granted a personal hearing, a requirement under the third proviso of Section 161 of the Central Goods and Service Tax Act, 2017. Based on these two procedural irregularities—the wrong department issuing the order and the lack of a personal hearing—the court set aside the rectification order. It directed the CGST Department to hear the rectification application again, ensuring the petitioner is given a proper personal hearing.
