Vedantu Innovations Private Limited vs. Additional Commissioner Of GST And Central Excise

The learned counsel appearing for the petitioner would submit that the impugned Show Cause Notice proposing reversal of Input Tax Credit under the IGST head, together with interest and penalty under Sections 74 and 74A of the CGST Act, has been issued in an arbitrary manner without proper application of mind. It is submitted that the notice does not disclose the specific basis for invoking Rule 86A of the CGST Rules or the alleged violations committed by the petitioner. The learned counsel would further contend that the petitioner had https://www.mhc.tn.gov.in/judis __________ Page3 of 6 already submitted its explanation; however, the same has not been considered before issuance of the impugned Show Cause Notice, thereby, resulting in violation of the principles of natural justice. It is also submitted that there is absolutely no suppression of facts on the part of the petitioner and, therefore, invocation of the provisions of Sections 74 and 74A of the CGST Act is wholly without juri iction. Accordingly, the petitioner seeks appropriate directions from this Court.

The learned Senior Standing Counsel appearing for the respondents would submit that the impugned proceedings are only at the stage of a Show Cause Notice and no final adjudication has yet been made. It is submitted that the petitioner has an effective opportunity to place all its objections and supporting materials before the adjudicating authority, who would consider the same and pass orders strictly in accordance with law. It is further submitted that the blocking of the electronic credit ledger has been effected in exercise of the powers conferred under the CGST Act and the Rules framed thereunder.

Considering the facts and circumstances of the case, and without expressing any opinion on the merits of the rival contentions, this Court is of the view that the petitioner should be afforded an opportunity to place all its objections before the adjudicating authority. https://www.mhc.tn.gov.in/judis __________ Page4 of 6

Accordingly, this Writ Petition is disposed of, by directing the first respondent to conclude the proceedings pursuant to the impugned Show Cause Notice, after affording the petitioner a reasonable opportunity of personal hearing and considering all the objections and documents that may be produced by the petitioner, and thereafter, pass appropriate orders on merits and in accordance with law, within a period of four (4) weeks from the date of receipt of a copy of this order. There shall be no order as to costs. Consequently, connected miscellaneous petitions are closed.

It is further made clear that the petitioner is at liberty to file an appropriate interim application before the first respondent seeking lifting of the blockage of the electronic credit ledger, and if such an application is filed, the first respondent shall consider and dispose of the same independently, on its own merits and in accordance with law, as expeditiously as possible. 22-07-2026 Index: Yes/No Speaking/Non-speaking order Neutral Citation: Yes/No smn2 https://www.mhc.tn.gov.in/judis __________ Page5 of 6 To 1. Additional Commissioner of GST and Central Excise, No. 1, Williams Road, Cantonment, Tiruchirappalli - 620 001. 2. Principal Commissioner of GST and Central Excise No. 1, Williams Road, Cantonment, Tiruchirappalli - 620 001. 3. Superintendent of GST and Central Excise, Headquarters Anti-Evasion, Trichy, No. 1, Williams Road, Cantonment, Tiruchirappalli - 620 001. https://www.mhc.tn.gov.in/judis __________ Page6 of 6 M.DHANDAPANI, J. smn2 22-07-2026 https://www.mhc.tn.gov.in/judis