Ganpati Exports Pvt. Ltd. Vs Commissioner (Delhi High Court)
In a recent directive, the Delhi High Court has instructed tax authorities to re-examine two Orders-in-Original issued to Ganpati Exports Pvt. Ltd., citing concerns over potential duplication of demand and arithmetic errors in the disputed Input Tax Credit (ITC) amounts. The decision, delivered on [No Date Provided in Text], highlights the judiciary’s role in ensuring clarity and accuracy in tax assessments.
Ganpati Exports Pvt. Ltd. had filed a petition challenging two Orders-in-Original, dated February 1, 2025, and February 4, 2025, respectively. The core of the petitioner’s argument revolved around two Show Cause Notices (SCNs) that led to these orders. The first SCN, issued by the Directorate General of GST Intelligence (DGGI) on July 31, 2024, proposed a demand and recovery of ITC amounting to ₹67,71,420. A second, undated SCN also raised a demand of ₹20,20,414 against the petitioner.
Counsel for Ganpati Exports, Mr. Bharat Bhushan Gupta, presented a three-fold argument to the court. Firstly, he contended that the amount of ₹20,20,414 was common to both Show Cause Notices, indicating a clear instance of duplication in the demand raised. Secondly, an arithmetic error was pointed out where an amount of ₹2,83,56,714 was wrongly mentioned instead of the correct figure of ₹67,71,420. Lastly, a discrepancy of ₹2,00,000 was highlighted, with ₹35,85,710 being reflected instead of ₹33,85,710.
