SS Enterprises Vs Office of the Commissioner Central Tax Delhi West and Anr. (Delhi High Court)
Delhi High Court has ruled that SS Enterprises, a firm facing a penalty of over Rs. 36 lakh under the Goods and Services Tax (GST) regime, must pursue its challenge through the statutory appellate mechanism rather than a writ petition. The court’s order also provided clarity on the interpretation of Section 75(5) of the Central Goods and Service Tax (CGST) Act, 2017, stating that the provision limits the maximum number of adjournments for a hearing to three times and does not mandate that an assessee must be provided with three personal hearings.
The case involved SS Enterprises challenging an Order-in-Original dated January 31, 2025, passed by the Additional Commissioner of Central Tax, CGST Delhi West Commissionerate, which imposed the penalty. The penalty stemmed from allegations that SS Enterprises had received invoices without the underlying goods from two firms, reportedly linked to an individual named Ms. Aaarti Kapoor. Authorities alleged that this facilitated the availment of Input Tax Credit (ITC) totaling Rs. 172 crore through purportedly fake and fraudulent firms and goods-less invoices.
SS Enterprises approached the High Court primarily arguing that the notice for personal hearing was not properly served, alleging it was dispatched late, leaving them time only for the last scheduled hearing date. They also contended that they were not connected to Ms. Aaarti Kapoor and, crucially, that they were not provided with three personal hearings, which they believed Section 75(5) of the CGST Act entitled them to.
