Alleged excess claim of Input Tax Credit: Delhi HC Orders Re-Adjudication

Mrishi Marcndey India Ltd Vs Sales Tax Officer (Delhi High Court)

In a recent ruling by the Delhi High Court, the case of Mrishi Marcndey India Ltd Vs Sales Tax Officer has seen significant developments. The court’s decision to restore the matter to the proper officer for adjudication of the Show Cause Notice (SCN) regarding the alleged absence of excess Input Tax Credit (ITC) has raised pertinent legal questions. Let’s delve into the detailed analysis of this judgment to understand its implications.

The petitioner challenged the order dated 21.12.2023, which disposed of the SCN proposing a hefty demand against them under Section 73 of the Central Goods and Services Tax Act, 2017. The crux of the petitioner’s argument rested on their contention that they possessed substantial evidence to refute any excess claim of Input Tax Credit. Moreover, they highlighted the absence of their Authorized Representative during the period in question as a contributing factor to their delayed response.

The court’s scrutiny of the order revealed that it was primarily passed due to the petitioner’s lack of response. However, the petitioner submitted evidence including account statements and invoices to support their claim of not availing Input Tax Credit beyond entitlement. In light of these facts, the court deemed it appropriate to grant the petitioner another opportunity to respond to the SCN.