Ishwar Singh Rathore Vs State of Himachal Pradesh & Ors. (Himachal Pradesh High court)
In , the petitioner challenged the demand order dated 20.06.2024 and the show cause proceedings initiated under the Central Goods and Services Tax Act, 2017. The petitioner sought quashing of the demand order and the show cause notice on the grounds that mandatory procedural requirements, including issuance of notice in Form ASMT-10 under Rule 99 and intimation in Form DRC-01A under Rule 142(1A), had not been followed prior to issuance of the show cause notice in Form DRC-01 dated 28.03.2024. The petitioner also challenged the provisions relating to restriction of Input Tax Credit (ITC) under Section 16(2)(c) read with Rule 36(4), but later chose not to press that relief while reserving liberty to raise it separately.
The petitioner submitted that a detailed reply along with supporting documents had been filed in response to the show cause notice claiming entitlement to ITC, but the same had not been considered before passing the order-in-original dated 20.06.2024. It was argued that the competent authority failed to examine whether GST payments had actually been made to the supplier, whether the transactions were genuine and supported by valid documents, whether the purchases were made prior to cancellation of the supplier’s registration, and whether the petitioner had complied with statutory verification obligations.
