BAGGA Link Motors Limited Vs Commissioner State Goods And Services Tax Delhi & Anr. (Delhi High Court)
In a significant judgment, the Delhi High Court has quashed a tax demand of ₹10.4 crore against BAGGA Link Motors Limited. The court found that the Commissioner of State Goods and Services Tax (SGST) did not consider the detailed reply submitted by the petitioner on its merits. This case underscores the necessity for tax authorities to meticulously review and address the defenses presented by taxpayers before passing final orders.
Background of the Case
The dispute arose from a Show Cause Notice issued to BAGGA Link Motors Limited on September 23, 2023, proposing a tax demand of ₹10,43,36,362 under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner filed a comprehensive reply on October 23, 2023, addressing each allegation with supporting documentation. Despite this, the Commissioner issued an order on December 30, 2023, upholding the tax demand and penalties without adequately considering the petitioner’s detailed response.
Legal Proceedings and Arguments
The petitioner challenged the Commissioner’s order in the Delhi High Court, arguing that the order was cryptic and did not address the detailed reply. The petitioner’s counsel emphasized that the response included thorough explanations and supporting documents for each issue raised in the Show Cause Notice, such as under-declaration of output tax and excess claims of Input Tax Credit (ITC).
