Input Tax Credit demand set aside for non-consideration of reply and documents, with remand for fresh decision.

An order confirming an Input Tax Credit demand under the CGST Act was set aside because the petitioner's detailed reply and supporting documents, including invoices, e-way bills, transport records, lorry receipts and bank statements, were not duly considered. The matter was remitted for fresh consideration, with directions to take the reply on record and afford the petitioner an opportunity to produce additional material and be heard before a new decision is taken.

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Issues: Whether the order confirming the Input Tax Credit demand under Section 74(9) of the CGST Act, 2017 was liable to be set aside and the matter remitted for fresh consideration.

Analysis: The impugned order proceeded on allegations that the petitioner had availed Input Tax Credit on invoices issued by fictitious entities. The petitioner had filed a detailed reply with supporting material such as tax invoices, e-way bills, transportation records, lorry receipts, and bank statements, but those materials were not duly considered. In these circumstances, the matter required reconsideration on the record, with an opportunity for the petitioner to place additional documents and be heard before a fresh decision was taken.

Conclusion: The impugned order was set aside and the matter was remitted to the respondent for fresh consideration after taking the petitioner's reply into account.

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