2025 (9) TMI 1261 - SCH - GST

Maintainability upheld; appeal allowed within four weeks to challenge ITC disallowance and raise fraud and natural justice claims

M/s. Krupa Jewellers Versus Assistant Commissioner Of State Tax-3

SC affirmed HC's view on maintainability, noting availability of alternative remedy before the appellate authority where disallowance of ITC was ... Maintainability of petition - availability of alternative remedy - Disallowance of ITC - non-application of mind - violation of principles of natural justice - it was held by High Court that 'It is pertinent to note that the basis of the impugned show-cause notice is the fraudulent GST numbers availed by the suppliers of the petitioner. In such circumstances, it would be open for the petitioner to raise all the contentions which are raised in this petition before the Appellate Authority.' HELD THAT:- In view of the fact that the petitioner has been prosecuting its claim in these proceedings, it is deemed proper to grant four weeks time to file the appeal and in the event such an appeal being filed within four weeks from today, the appellate authority shall adjudicate the appeal on merits. Petition disposed off. The Court stated it is 'not inclined to entertain this petition' and accordingly the 'special leave petition stands dismissed.' Liberty was granted to the petitioner to 'urge all grounds, including the one urged in the present petition, before the appellate authority' and the appellate authority is directed to decide the appeal 'on its own merits and in accordance with law' without being influenced by observations in the impugned order. The petitioner sought enlargement of time because the statutory period for filing an appeal was to expire on 13.09.2025. The Court granted an extension of four weeks from the date of the order to file the appeal and directed that if the appeal is filed within that period the appellate authority shall adjudicate it on merits. 'Pending application(s), if any, shall stand disposed of.'