Manoj Kumar Akhria Vs Union of India And Ors (Delhi High Court)
The Delhi High Court, in the matter of Manoj Kumar Akhria Vs Union of India And Ors, addressed a writ petition challenging a substantial tax demand issued by the Office of the Sales Tax Officer Class II/AVATO.
The Dispute and Demand
The petitioner, Mr. Manoj Kumar Akhria, filed the petition under Articles 226 and 227 of the Constitution of India to challenge an impugned order dated February 18, 2025, which raised a total tax demand of Rs. 1,51,53,659.00/- for the Financial Year 2020-21.
The total demand was raised under multiple sub-heads:
1. Under declaration of output tax (Reconciliation of E-way bill turnover with GSTR-01).
2. Excess claim of Input Tax Credit (ITC) (Scrutiny of ITC availed, and ITC claimed from cancelled dealers, return defaulters, and tax non-payers).
A crucial point of contention was the demand relating to ITC claimed from cancelled dealers, which led to a direct constitutional challenge against Section 16(2)(c) of the Central Goods and Service Tax Act, 2017 (CGST Act). Counsel for the petitioner highlighted that the portion of the demand specifically under Section 16(2)(c) was only Rs. 7,07,060/-, a minor fraction of the overall demand.
