Case Law Details
Sandeep Jain Proprietor of M/s Nandi Polychem Vs Union of India (Delhi High Court)
The case of Sandeep Jain, proprietor of M/s Nandi Polychem, against the Union of India Revenue Secretary and others, concerns the denial of Input Tax Credit (ITC) without adequate consideration of the petitioner’s response. The Delhi High Court has intervened to ensure a fair process in this matter.
Detailed Analysis: The petitioner, Sandeep Jain, challenged the order of 30.12.2023, which confirmed a demand of Rs. 10,03,08,628.00 against him under Section 73 of the Central Goods and Services Tax Act, 2017. The petitioner had responded to the show cause notice dated 23.09.2023 with detailed replies on 23.10.2023, 11.12.2023, and 21.12.2023, providing comprehensive disclosures regarding the alleged under-declaration of output tax, excess claim of ITC, and other issues.
However, the impugned order failed to consider the petitioner’s responses adequately. It dismissed the petitioner’s explanations without proper scrutiny, stating that they were incomplete and unsupported by adequate documents. The Proper Officer’s opinion that the reply was unsatisfactory appeared to be based on superficial assessment, neglecting the detailed nature of the petitioner’s submissions.
The Delhi High Court found fault with the impugned order, highlighting the Proper Officer’s failure to consider the petitioner’s reply on its merits. The court emphasized the importance of allowing the petitioner an opportunity to clarify any deficiencies in the response or furnish additional details, which was not provided in this case.
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