JMD Lightening And Cable Co Vs Additional Commissioner Delhi (Delhi High Court)
Summary: The Delhi High Court heard a petition filed by JMD Lightening & Cable Co. challenging the Order-in-Original dated 25 January 2025, which had imposed a tax and penalty demand of ₹80.92 crore. The petitioner contended that the adjudicating authority failed to consider the sundry creditors’ ledgers submitted through an email dated 22 May 2024, covering the period from April 2018 to March 2023. The petitioner argued that despite providing these details, the adjudicating authority ignored them and proceeded to compute inadmissible Input Tax Credit (ITC) based on incomplete records.
In paragraph 18.1 of the impugned order, the adjudicating authority noted that the petitioner had not furnished a complete creditors’ ledger for FY 2017–18 onwards despite repeated requests. Consequently, the authority computed inadmissible ITC amounting to ₹7.56 crore on total sundry creditors of ₹49.57 crore, forming the basis for the final demand. The petitioner also asserted that an amount of ₹32 lakh deposited as ITC was not given credit in the computation.
The respondent’s counsel argued that the challenge was filed belatedly, as the appeal period had already expired. However, the High Court observed that the tax computation under paragraph 18.1 formed the foundation of the demand and that the petitioner’s documentation, including the list of sundry creditors, warranted reconsideration due to the substantial demand amount.
