2023 (2) TMI 36 - HC - GST

Denial of input tax credit - denial on the ground that the registration of the other end dealer was cancelled - 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, it is opined that 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:
1. Challenge against order under Section 74(9) of WBGST Act, 2017.
2. Denial of input tax credit due to cancellation of dealer's registration.
3. Request for additional opportunity to present documents.
4. Remand of the matter for fresh consideration.

Analysis:
1. The judgment pertains to an intra-Court appeal challenging an order passed under Section 74(9) of the WBGST Act, 2017. The appellant had initially received a show cause notice and failed to appear for a scheduled hearing, leading to the order being passed on 21st June, 2022. The appellant subsequently submitted a representation seeking another chance to present documents and provide explanations.

2. The denial of input tax credit to the appellant was based on the cancellation of the registration of the dealer at the other end. The appellant contended that they possessed sufficient evidence to prove the genuineness of their transactions. In light of this, the Court found it appropriate to grant the appellant another opportunity to submit the relevant documents for consideration by the adjudicating authority.

3. Consequently, the Court decided to remand the matter back to the authority for fresh consideration. The appellant was directed to treat the order dated 21st June, 2022, as a show cause notice and submit a reply along with supporting documents by 10th February, 2023. The adjudicating authority was instructed to schedule a personal hearing promptly, where the appellant must present their case without seeking adjournment.

4. The judgment concluded by emphasizing that the adjudicating authority should evaluate the explanations and documents provided by the appellant and issue a detailed order based on merits and in compliance with the law. No costs were awarded, and the parties were granted an urgent certified copy of the order upon fulfilling the necessary formalities.