Metalax Industries Vs Additional Commissioner And Anr (Delhi High Court)
Delhi High Court, in the case of Metalax Industries Vs Additional Commissioner And Anr, has allowed Metalax Industries to file a single consolidated appeal against a show cause notice (SCN) and a subsequent order that encompassed multiple financial years. The decision, delivered on February 3, 2025, addresses a procedural challenge faced by the petitioner.
Metalax Industries had challenged an Order-in-Original dated February 3, 2025, and a corresponding Form DRC-07 dated February 5, 2025, issued by the Additional Commissioner. These actions stemmed from an SCN issued on August 31, 2022, by the Directorate General Goods & Service Tax Intelligence, Gurugram Zonal Unit. The SCN alleged wrongful availment of Input Tax Credit (ITC) through the use of “good-less invoices.” This matter originated from a search conducted at Metalax Industries’ premises on December 29, 2020, leading to the arrest of its proprietor on December 30, 2020.
The SCN covered the financial periods from 2017-18 to 2019-20. Following adjudication, the impugned order demanded approximately Rs. 6.35 crore. The Form DRC-07, however, specifically mentioned “July, 2017 to March, 2018” as the tax period.
Counsel for Metalax Industries argued that despite a common SCN and a common impugned order, the singular mention of “2017-18” in the order would compel the petitioner to file three separate appeals for each financial year. The Department’s counsel clarified that the earliest year was cited to ensure the order fell within the limitation period, and the demand pertained to all three financial years.
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