SS Enterprises Vs Office of The Commissioner Central Tax Delhi West And Anr (Delhi High Court)
Delhi High Court has clarified the interpretation of Section 75(5) of the Central Goods and Service Tax (CGST) Act, 2017, ruling that the provision allows for a maximum of three adjournments in proceedings, rather than guaranteeing a minimum of three personal hearings. This decision came in the case of SS Enterprises Vs Office of The Commissioner Central Tax Delhi West And Anr, where the petitioner challenged a penalty order related to alleged fraudulent Input Tax Credit (ITC) availment. While dismissing the writ petition due to the availability of an appellate remedy, the High Court issued specific directions to ensure the petitioner a fair opportunity before the appellate authority.
Case Overview and Penalty Imposed
SS Enterprises filed a petition under Articles 226 and 227 of the Constitution, challenging an Order-in-Original dated January 31, 2025. This order, issued by the Additional Commissioner of Central Tax, CGST Delhi West Commissionerate, imposed a penalty of Rs. 36,05,299/- on the petitioner.
The Revenue alleged that SS Enterprises received “goods-less invoices” from two firms, M/s. Shivaay Trading and Satyam Associates, purportedly linked to Ms. Aaarti Kapoor. The Department contended that SS Enterprises had availed approximately Rs. 172 crores in ITC through these allegedly fake and fraudulent invoices.
