2025 (8) TMI 396 - HC - GST

Petitioner failed to attend hearings; no natural justice violation found; appeal allowed under Section 107 CGST Act by August 2025

The HC held that there was no violation of natural justice as the petitioner failed to attend the multiple personal hearings provided. Since the ... Wrongful availment of Input Tax Credit - Petitioner failed to avail of the opportunity of hearing - violation of principles of natural justice - HELD THAT:- The Court has noted that in Order-in-Original dated 4th February, 2025, paragraph 22.1 records that personal hearings were held on 8th November, 2024, 6th December, 2024 and 9th December, 2024. Several firms have, in fact, appeared for personal hearing and had made their submissions before the Adjudicating Authority. However, many noticees, including the Petitioner, failed to avail of the said opportunity. In view thereof, it cannot be said that there was any violation of principles of natural justice. In addition, since the Petitioner has already paid the amount, albeit under protest, this would be a fit case to relegate the Petitioner to the Appellate remedy under Section 107 of the Central Goods and Service Act, 2017 - If the said appeal is filed by the Petitioner by 31st August, 2025 before the Appellate Authority, the same shall be adjudicated on merits and shall not be dismissed on limitation. Petition disposed off. The Delhi High Court, in W.P.(C) 10918/2025, addressed a challenge under Articles 226 and 227 of the Constitution of India to the Order-in-Original dated 4th February, 2025, which demanded approximately Rs. 6.5 lakhs from the Petitioner for alleged wrongful availment of inadmissible Input Tax Credit (ITC) linked to goods-less invoices issued by five non-existent supplier firms. The impugned order found that 161 entities, including the Petitioner, collectively availed inadmissible ITC amounting to Rs. 12.90 crores, with some entities voluntarily depositing amounts to reverse the ITC. The Petitioner contended that the amount was deposited under protest and that no personal hearing was granted. The Court noted that personal hearings were conducted on multiple dates, but the Petitioner failed to avail this opportunity, thus negating any violation of the principles of natural justice. Since the Petitioner has already paid the disputed amount, the Court held it appropriate to direct the Petitioner to seek remedy through an appeal under Section 107 of the Central Goods and Services Tax Act, 2017. The Court further stated: 'If the said appeal is filed by the Petitioner by 31st August, 2025 before the Appellate Authority, the same shall be adjudicated on merits and shall not be dismissed on limitation.' The Petitioner may also raise the issue of delay in uploading the order in the appeal. The petition was disposed of accordingly.