Case Law Details
Mother Dairy Fruit & Vegetable Private Limited Vs Sales Tax Officer (Delhi High Court)
Introduction: In the case of Mother Dairy Fruit & Vegetable Private Limited vs. Sales Tax Officer, the Delhi High Court addressed the rejection of an Input Tax Credit (ITC) claim by the Proper Officer without affording the petitioner a fair opportunity for a hearing. The court found the order passed under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017, to be inadequate in considering the petitioner’s detailed reply and lacking proper justification.
Detailed Analysis: The petitioner had submitted a detailed reply to the Show Cause Notice, providing full disclosures regarding the excess claim of Input Tax Credit (ITC), under declaration of ineligible ITC, and ITC claims from cancelled dealers, return defaulters, and tax non-payers. However, the impugned order passed on December 23, 2023, dismissed the petitioner’s response as unsatisfactory without proper consideration.
The Delhi High Court observed that the Proper Officer failed to adequately assess the petitioner’s reply on its merits. Instead, the officer deemed the reply as incomplete and unsupported by adequate documents without proper justification. The court highlighted the necessity for the Proper Officer to engage with the petitioner’s submissions and provide an opportunity for clarification if deemed necessary.
Moreover, the court emphasized that the petitioner was not afforded the opportunity to address any deficiencies in their reply or provide additional documents or details, which is essential for a fair adjudication process. Consequently, the impugned order was deemed unsustainable and set aside by the Delhi High Court.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
