Pret Study By Janak Fashions Private Limited Vs Assistant Commissioner (Delhi High Court)
Delhi High Court has declined to quash an order from the Goods and Services Tax (GST) authorities that confirmed a demand for Input Tax Credit (ITC) allegedly availed without the actual receipt of goods, along with imposing equivalent penalty and interest. While the petitioner claimed they were denied access to a personal hearing, the court found the company lacked diligence in responding to notices and pursuing the hearing opportunity. The court, however, granted the petitioner the liberty to challenge the order through the statutory appeal process.
The case involved Pret Study By Janak Fashions Private Limited, which challenged an order dated January 28, 2025, passed by the Assistant Commissioner, CGST Delhi East Commissionerate. The order confirmed a demand of ₹34,92,903 in ITC that the department alleged was availed and utilized without the underlying goods being received. This alleged wrongful availment led to a confirmed demand for the said ITC amount, along with equivalent penalty and applicable interest.
According to the court’s review of the records, the tax department had initiated proceedings by issuing two show cause notices, dated July 22, 2022, and August 3, 2024, respectively. Subsequently, a notice for personal hearing was sent to the petitioner on January 8, 2025, offering three potential dates for the hearing: January 13, 14, and 15, 2025. The final assessment order was then passed on January 28, 2025.
