Tax Dispute Resolution: Petitioner Granted Personal Hearing After Input Tax Credit Demand Clarification and Rights Preservation

HC addressed a petition challenging a tax demand for alleged excess Input Tax Credit. After hearing the Assistant Commissioner, who clarified the demand was reduced, the court directed a personal hearing for the Petitioner on a pending rectification application. The court preserved all the Petitioner's rights and remedies regarding the order and disposed of the petition.

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The Delhi High Court, under Article 226 of the Constitution, addressed a petition challenging the impugned order dated 28th February 2025 confirming a demand of Rs. 1,60,35,990 against the Petitioner for alleged excess Input Tax Credit (ITC) availment. The Petitioner contended that their detailed reply to the Show Cause Notice (SCN) dated 19th November 2024 was not considered and sought remand to the Adjudicating Authority (GST Department).The Court, after hearing the Assistant Commissioner who clarified that the reply was considered-resulting in a reduction of demand from Rs. 7.74 crores to Rs. 1.60 crores-and noting a pending rectification application under Section 161 of the Central Goods and Services Tax Act, 2017, observed that the Petitioner had not disclosed this pendency.The Court directed that a personal hearing be afforded to the Petitioner on the rectification application, with the hearing date communicated via the Portal and to the Petitioner's counsel. It held that "all rights and remedies of the Petitioner in respect of the impugned order as also the rectification order, if any, are left open," and accordingly disposed of the petition and all pending applications.

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