Ambika Traders Through Vs Additional Commissioner (Delhi High Court)
In the recent case of Ambika Traders Through Proprietor Gaurav Gupta Vs Additional Commissioner, Adjudication DGGSTI ,CGST Delhi North, Delhi High court, held that case where a substantial amount of fradulent ITC is alleged to have been availed/utilized A consolidated notice is, not only permissible but, in fact, required in such cases in order to establish the illegal modality adopted by such businesses and entities. The language of the provision itself does not prevent issuance of SCN or order for multiple years in a consolidated manner.
Fact of the case;- The Petitioner is a registered sole proprietorship and dealing in metal scrap. a search operation was carried out at the residential premises as also at its sales office. Various records/files were resumed by the GST Department from the said premises, followed by the arrest of Proprietor.
A Show Cause Notice for demand on the ground of alleged fraudulent availment and wrongful passing on of Input Tax Credit. A detailed reply was filed by the Petitioner to the SCN, however order confirming the demand of tax along with a penalty of an equivalent amount.
Analysis of the court.
During the adjudication of SCN, Adjudicating Authority comes to the conclusion that the behaviour of the noticee i.e., the Petitioner has been evasive. There was no attempt on behalf of the Petitioner to explain and justify the availment of ITC. The Adjudicating Authority holds that there was no receipt of any goods nor supply of any goods.
