Top Stories Delhi HC directs Re-adjudication upon SCN issued in Respect of Wrongly Claimed GST Credit [Read Order] The Delhi High Court orders a readjudication of the SCN about the GST credit that was incorrectly claimed. By Aparna. M – On March 6, 2024 5:36 pm – 2 mins read In a recent case, the Delhi High Court directed re-adjudication towards the Show Cause Notice issued in respect of wrongly claimed Goods and Service Tax Credit.

The petitioner Aarem Trad Ex Private Limited filed the  writ petition against the order made  proceedings under Section 73 of the Central Good and Service Tax Act 2017 have been concluded and a demand has been created against the petitioner. During the proceedings,counsel for the petitioner argued that  petitioner had on account of an error, claimed Integrated GST credit instead of CGST and SGST credit which was a mere bonafide clerical error.

Further petitioner counsel argued that the amount is still lying to the credit of the petitioner and that the petitioner had duly informed the authorities of the same in response to the Show Cause Notice. It was observed by the court that the order dated 22.12.2023 recorded

“Since, no payment has been made within 30 days of the issue of the notice by you; therefore, on the basis of documents available with the department and information furnished by you, if any, demand is created for the reasons and other details attached in annexure” After determining the order the bench observed that the proper officer merely held that “ since no payments has been made within 30 days of the issue of notice by you and no proper reply/explanation has been received”

Thus which ex-facie shows that the proper officer has not even looked at the reply submitted by the petitioner. Therefore the a division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja remitted the matter to the proper officer to readjudicating the Show Cause Notice after giving an opportunity of personal hearing to the petitioner. Mr. Tarun Gulati, Senior Advocate with Ms. Akanksha Choudhary, Mr. R.K. Naroola, Mr. Udayan Mukerji, Ms. Bhavika Kohli and Mr. Devansh Garg, Advocates. Who appeared for the petitioner. Samridhi Vats, Advocate appeared for the revenue.