Delhi Foils Vs Additional Commissioner And Anr (Delhi High Court)
Delhi High Court has permitted two related business concerns, Delhi Foils and Abinox Industries, to file a single, consolidated appeal against a common Show Cause Notice (SCN) and final demand order issued under the Goods and Services Tax (GST) regime. The court also granted an extension for filing the appeal and making the required pre-deposit.
The petitioners, Delhi Foils (a partnership concern of Mr. Alok Bhargava and Ms. Neena Bhargava) and Abinox Industries (a proprietorship concern of Mr. Akul Bhargava), challenged a common SCN dated August 31, 2022, and a subsequent final order dated February 3, 2025. The SCN, issued by the Directorate General of Goods & Service Tax Intelligence, Gurugram Zonal Unit, pertained to alleged wrongful availment of Input Tax Credit (ITC) through the issuance of “good-less invoices.” This matter arose from a search conducted at the petitioners’ premises on December 29, 2020, which led to the arrest of their proprietors/partners on December 30, 2020.
The SCN covered the financial years 2017-18 to 2019-20. The petitioners had replied to the SCN, which was subsequently adjudicated, leading to the impugned demand order. A point of contention arose regarding Form DRC-07, dated February 5, 2025, which specified the tax period as “July, 2017 to March, 2018.” The Department’s counsel clarified that this form related to all three financial years (2017-18 to 2019-20), with the earliest year mentioned to indicate compliance with the limitation period.
