2023 (4) TMI 249 - HC - GST

Cancellation of GST registration of petitioner - denial of Input Tax Credit - HELD THAT - Considering the fact that the input tax credit has been denied to the appellant on the ground that the registration of the other end dealer was cancelled and according to the appellant, there were sufficient documents to show that the transactions done by them are genuine, one more opportunity should be granted by the adjudicating authority and decision should be taken on merits after considering the documents that may be placed by the appellant before the authority. Matter remanded back to the authority for fresh consideration.

Summary

Issues involved:
1. Challenge against an order passed under Section 74(9) of the WBGST Act, 2017.
2. Denial of input tax credit due to cancellation of registration of the other end dealer.
3. Request for granting one more opportunity to submit documents for consideration.
4. Remand of the matter back to the authority for fresh consideration.

The judgment pertains to an intra-Court appeal challenging an order dated 21st November, 2022, in W.P.A. No.21605 of 2022, which contested an order issued under Section 74(9) of the WBGST Act, 2017 on 21st June, 2022. The appellant failed to appear for a personal hearing on 20th June, 2022, but submitted a belated representation on 21st June, 2022, seeking another chance to present documents overlooked earlier. The Court acknowledged the appellant's claim of having sufficient evidence to prove the genuineness of transactions and directed the matter to be remanded back to the authority for a fresh review, emphasizing the need to consider the documents to be submitted by the appellant.

The denial of input tax credit was based on the cancellation of the registration of the other end dealer. The appellant contended that adequate documentation existed to validate the transactions. The Court, recognizing the importance of ensuring a fair opportunity for the appellant, decided in favor of granting another chance to present the necessary documents for a thorough evaluation by the adjudicating authority. Consequently, the Court directed the appellant to treat the previous order as a show cause notice, requiring a reply with supporting documents by 10th February, 2023. The adjudicating authority was instructed to schedule a personal hearing promptly, without adjournment requests, to assess the submissions and documents provided by the appellant before issuing a detailed order based on merit and legality.

The judgment concluded by disposing of the appeal without imposing any costs. It further mandated the provision of an urgent certified copy of the order to the concerned parties upon completion of all legal formalities, ensuring expeditious compliance with the directives outlined in the judgment.