GST Update

 Desk of CA. Praveen Sharma – 977 Series (CAPS) 

DELHI HIGH COURT IN THE CASE OF Harsh Khanna and Sons Huf 

In this case, the taxpayer challenged the demand raised for excess input tax credit along with orders passed by the authorities. The demand was based on a mismatch between credit claimed and credit reflected in records for the relevant financial year.

The original order confirmed the demand along with interest and penalty. On appeal, partial relief was granted, but the major demand remained.

During the hearing before the Court, the taxpayer submitted that the credit in question had already been reversed and correctly claimed under the proper head even before issuance of the notice.

Initially, this claim was rejected by the authorities due to lack of supporting documents. However, during the Court proceedings, the department accepted the correctness of the taxpayer’s submission.

Considering this, the Court set aside both the original order and the appellate order. The matter was sent back to the authority for fresh examination based on the correct facts.

The authority has been directed to decide the matter again within a specified time. The Court also clarified that no final opinion has been given on merits.

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Regards
CAPS