Cipla Limited vs. Union Of INDIA And Ors.

Held

The High Court held that the respondent acted unfairly by concluding proceedings without allowing Cipla to explain the apparent discrepancy between its declaration and the CA certificate, which was produced at the respondent's direction. The Court emphasized that principles of fairness require providing an opportunity to explain human errors in declarations before passing a final order.

Facts

Cipla Limited claimed budgetary support under a GST regime notification. A discrepancy arose between its initial declaration of Input Tax Credit (ITC) and a subsequent Chartered Accountant (CA) certificate, which showed a lower actual availed ITC. Respondent No. 6 passed an order accepting the higher initial figure without considering the CA certificate or affording Cipla an opportunity to explain the claimed mistake.

Key Issues

Whether the authorities can conclude proceedings for budgetary support without affording the applicant an opportunity to explain a discrepancy between their initial declaration and a CA certificate, especially when the applicant claims a human error and the certificate was requested by the authorities.