Tax Credit Claim: Administrative Authority Must Provide Reasoned Order and Fair Hearing Within Six Weeks of Petition

HC ruled that the Assistant Commissioner must issue a formal, reasoned order addressing the petitioner's input tax credit claim within six weeks. The court directed the respondent to provide an opportunity for the petitioner to present arguments and ensure a comprehensive examination of the merits. The writ petition was disposed of with instructions for a proper adjudication process.

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Issues:
1. Petitioner's entitlement to credit not granted
2. Rejection of representation by Assistant Commissioner, Central GST Division
3. Lack of formal order for appeal

Analysis:
1. The petitioner had previously filed a writ petition contending that the credit entitled to them was not granted. The court had directed the Assistant Commissioner, GST to consider the representation. The Assistant Commissioner rejected the representation stating the amount of eligible Input service tax and informing about the inadmissibility of adjusting liabilities arising from interest and penalties from input Cenvat credit.

2. The petitioner argued that a mere rejection without a formal order on the merits cannot be appealed. The Standing Counsel accepted notice on behalf of the respondent and assured that a formal order examining the petitioner's contentions on merit with reasons would be issued. The court directed the respondent to ensure that the concerned Assistant Commissioner or appropriate Adjudicating Authority completes the proceedings and passes a reasoned order within six weeks, granting the petitioner an opportunity to present all arguments.

3. In response to the contentions raised, the court disposed of the writ petition with the direction for a formal order to be issued by the Assistant Commissioner or Adjudicating Authority within six weeks, allowing the petitioner to present all available arguments. The judgment emphasized the need for a reasoned order on the merits to enable a proper appeal process. The writ petition was disposed of accordingly with the order being issued dasti.

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