Case Law Details
Lakshman Pran Data Enterprises Vs Commissioner of Delhi Goods And Service Tax (Delhi High Court)
In a significant legal development, the Delhi High Court recently adjudicated on the case of Lakshman Pran Data Enterprises versus the Commissioner of Delhi Goods and Service Tax. The court’s decision to set aside a Goods and Services Tax (GST) order dated 26.12.2023 has drawn attention due to procedural irregularities and lack of sufficient grounds for rejecting the petitioner’s submissions.
The petitioner, Lakshman Pran Data Enterprises, challenged the legality of an order issued under Section 73 of the CGST/DGST Act, 2017. The core contention was the alleged excessive availing of Input Tax Credit (ITC) amounting to Rs. 4,52,09,706.00. The case revolved around the period from July 2017 to March 2018, with the petitioner disputing the imposition of an aggregate demand totaling Rs. 2,73,78,128.40, comprising SGST and CGST.
The court noted several critical discrepancies in the proceedings. Firstly, the petitioner argued that the Show Cause Notice issued on 23.09.2023 and subsequent reminder notices were time-barred under the statute of limitations. Secondly, the petitioner contended that despite receiving a reminder notice, there was no actual mention or scheduling of a personal hearing, rendering the process defective.
Furthermore, the court highlighted the lack of reasoning in the impugned order dated 26.12.2023. The order failed to articulate valid grounds for rejecting the petitioner’s detailed response and merely referenced an unsatisfactory examination of GST portal data. Moreover, the court observed that the respondent’s claim of providing a personal hearing was erroneous, as the reminder notice did not specify any date or venue for such a hearing.
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