JIG Brothers Vs Sales Tax Officer (Delhi High Court)
In a significant judgment, the Delhi High Court ordered the re-adjudication of a Show Cause Notice (SCN) and the subsequent demand order against JIG Brothers. The crux of the matter was the petitioner’s unawareness of the ongoing proceedings, which arose because their accountant, responsible for GST compliance, was on maternity leave.
The case revolves around an impugned order dated April 17, 2024, which finalized a demand of ₹7,30,212.00 against JIG Brothers under Section 73 of the Central Goods and Services Tax Act, 2017. The proceedings were initiated with an SCN issued on December 27, 2023, alleging excess claims of Input Tax Credit (ITC) and discrepancies in the ITC availed in GSTR-3B compared to the tax declared by suppliers.
Petitioner’s Argument
The petitioner contended that the SCN was not responded to because their accountant, who handled GST compliance, was on a 12-week maternity leave. As a result, the petitioner was unaware of the SCN and thus did not furnish a reply. This absence was not intentional but due to unavoidable circumstances.
Court’s Observations
The court noted that the impugned order recorded the absence of a reply from the petitioner and proceeded to create the demand ex-parte. The Proper Officer had concluded that despite opportunities, the petitioner neither filed a reply online nor appeared in person or through an authorized representative.
