2025 (2) TMI 1098 - HC - GST

Overstatement of Input Tax Credit (ITC) - total tax reflected in the order is in excess of 50, 00, 000/-Interest and penalty are in addition to the same - HELD THAT - Impugned proceeding against petitioner for financial year 2019-20 resulting in demand order under annexure-6 are all set aside and quashed. Petition disposed off.

Summary

The High Court, in a judgment delivered by Justice Arindam Sinha and Justice M.S. Sahoo, heard arguments from Mrs. K. Roy Choudhury for the Appellant and Mr. S. Mishra for the Respondent. The Appellant argued that the proceeding initiated against the petitioner for the financial year 2019-20 was based on an alleged overstatement of Input Tax Credit (ITC) at 9,00,982. It was highlighted that a previous order for the period July to September 2019 was not considered in the subsequent proceeding, leading to a reassessment for the overlapping period. The Respondent, represented by Mr. Mishra, agreed that the proceeding should be interfered with, allowing the Revenue to start afresh. Consequently, the court set aside and quashed the demand order against the petitioner for the financial year 2019-20, granting the Revenue the liberty to proceed in accordance with the law. The writ petition was disposed of.