Fedral Bank Ltd Vs GST Proper Officer (Delhi High Court)
The Delhi High Court heard a petition challenging an order confirming a GST demand of ₹5.50 crore against the petitioner, Fedral Bank Ltd. The petitioner contended that while the order confirmed some demands, certain demands were simultaneously dropped in the Form GST DRC-07, creating inconsistencies. The petitioner had also filed a rectification application, which was rejected without a hearing. The issues raised in the Show Cause Notice included excess input tax credit (ITC) claimed due to non-reconciliation, reversal of ITC on non-business and exempt supplies, under-declaration of ineligible ITC, and ITC claimed from cancelled dealers, defaulters, and non-payers. While the demand of ₹43.41 lakh was confirmed for excess ITC, the demands relating to the other issues were dropped. However, the order noted “Not Agreed with Tax Payer…The demand is dropped,” without explaining the rationale. The Court observed this contradiction and directed the GST department to provide an explanation for dropping the demand despite disagreement. The matter is listed for further hearing on 17th December, 2025, and the petitioner is permitted to approach the Court if coercive action is taken in the interim.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
