Soham Industries Vs Central Goods And Service Tax (Delhi High Court)
Delhi High Court has declined to entertain a writ petition filed by Soham Industries, challenging an order that denied Input Tax Credit (ITC) worth Rs. 26,95,895/- and imposed equivalent penalties, along with interest. The Court, in its ruling, directed the petitioner to avail the statutory appellate remedy, emphasizing that writ jurisdiction is an extraordinary recourse not to be invoked when alternative effective remedies exist.
The case, heard via hybrid mode, involved an impugned order dated December 31, 2024, issued by the Assistant Commissioner, Central Goods and Service Tax. This order stemmed from a Show Cause Notice (SCN) dated August 2, 2024. The core allegations against Soham Industries were severe: the firm was identified as a recipient from 18 other firms found to be non-existent, and Soham Industries itself was deemed non-existent with no operational activities at its registered premises.
The impugned order explicitly detailed the demand:
- Denial and confirmation of inadmissible ITC amounting to Rs. 26,95,895/- under Section 74(1) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017.
- Confirmation of interest on the denied ITC under Section 50 of the CGST Act, 2017, read with DGST Act, 2017, and IGST Act, 2017.
- Confirmation of an equivalent penalty of Rs. 26,95,895/- under various sections, including Section 122(1)(vii), (x), (xvi), and Section 122(2)(b), read with Section 74, 89, 90 of the CGST Act, 2017, and corresponding provisions of the Delhi SGST Act, 2017.
The departmental records indicated that personal hearings regarding the SCN were scheduled for October 29, 2024, November 13, 2024, and December 4, 2024. However, as noted in paragraph 11 of the impugned order, neither Soham Industries nor its authorized representative attended any of these hearings.
