2024 (8) TMI 700 - HC - GST

Challenge to present petition - unreasoned order - violation of principles of natural justice - inadmissible input tax credit in respect of motor vehicle services and airlines travel - HELD THAT - This Court is inundated with writ petitions challenging such unreasoned orders, which have been issued on the last few days of the extended period of limitation for passing such orders - It is apparent that such orders are not informed by reason and fail to consider the responses submitted by the tax payers. It appears that these orders have been passed only to somehow raise a demand prior to the expiry of the limitation period and perhaps being fully conscious that said orders would not sustain. List on 29.08.2024.

Summary

The petitioner challenged an unreasoned order dated 30.04.2024 under CGST Act/DGST Act for FY 2018-19 regarding inadmissible ITC for motor vehicle and airlines travel. The court noted a trend of unreasoned orders issued near the limitation period, deeming it fraudulent on the statute. The court issued a notice, stayed the impugned order, and requested affidavits from respondents. List on 29.08.2024.