Pret Study By Janak Fashions Private Limited vs. Additional Commissioner Of Central GST Delhi East
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The Petitioner, Pret Study by Janak Fashions Private Limited, filed a writ petition challenging an order dated January 13, 2025, passed by the Additional Commissioner of Central GST, Delhi East. This order was a consequence of a show cause notice issued on July 22, 2022. The Central GST Department alleged that the Petitioner had availed excess Input Tax Credit (ITC) in their GSTR3B returns compared to the ITC auto-populated in their GSTR2A. The Petitioner had filed a detailed reply on December 14, 2022. The impugned order confirmed a demand of Rs. 2,34,72,696/- and imposed an equivalent penalty.
Held
The Court held that the impugned order is an appealable order. It noted that there were no allegations of lack of jurisdiction or violation of the principles of natural justice raised by the Petitioner. The Court found that the Petitioner's submission regarding the improper procedure followed could also be raised as a ground in an appeal. Therefore, the Court directed the Petitioner to file an appeal within 30 days. The appeal was to be accompanied by a pre-deposit only on the amount of tax demanded, as per Section 107 of the CGST Act, 2017. The Court further stipulated that if the appeal was filed within the stipulated time with the pre-deposit, it would not be dismissed on the ground of limitation and would be adjudicated on its merits. The writ petition was accordingly disposed of.
Key Issues
1. Whether the impugned order, which confirmed a demand of Rs. 2,34,72,696/- and imposed an equivalent penalty, is appealable under the Central Goods and Service Tax Act, 2017? (Question of law) Petitioner's contention: The Petitioner argued that the proper procedure had not been followed in the present case. This procedural irregularity, according to the Petitioner, warranted consideration by the High Court. Respondent's contention: The Respondent, represented by the Additional Commissioner of Central GST, Delhi East, did not explicitly record arguments in the judgment. However, the Court's observation implies that the Respondent would rely on the validity of the impugned order and the procedures followed.
Sections Cited
Section 107
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R % 21.04.2025
This hearing has been done through hybrid mode. CM APPL. 22857/2025 (exemption)
Allowed, subject to all just exceptions. Application is disposed of. W.P.(C) 4981/2025
The present petition has been filed by the Petitioner- Pret Study by Janak Fashions Private Limited under Article 226 of the Constitution of India, inter alia, assailing the impugned order dated 13th January, 2025 passed by the Respondent- Additional Commissioner of Central GST, Delhi East (hereinafter, ‘impugned order’). The said impugned order arises out of a show cause notice dated 22nd July, 2022, in which the allegation of the Central Goods and Service Tax (hereinafter, ‘CGST’) Department is that the Petitioner had availed excess Input Tax Credit (hereinafter, ‘ITC’) in the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 23:08:06
GSTR3B as comparison to ITC auto-populated in their GSTR2A.
A detailed reply was filed by the Petitioner on 14th December, 2022, pursuant to which the impugned order had been passed. The demand has been confirmed to the tune of Rs.2,34,72,696/- and an equivalent penalty has been imposed on the Petitioner.
In opinion of this Court, the impugned order is an appealable order. There is no allegation of lack of juri iction or violation of principles of natural justice in the present petition.
The submission of ld. Counsel for the Petitioner is that the proper procedure has not been followed in the present case.
However, this ground can also be raised in the appeal.
Let the appeal be filed within 30 days along with pre-deposit only on the amount of tax demanded in terms of Section 107 of the Central Goods and Service Tax Act, 2017. 9. If the appeal is filed within 30 days with the pre-deposit, the appeal shall not be dismissed on the ground of limitation and shall be adjudicated on merits.
Accordingly, the petition is disposed of. Pending applications, if any, are also disposed of. PRATHIBA M. SINGH, J. RAJNEESH KUMAR GUPTA, J. APRIL 21, 2025/PB/ck This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 23:08:06
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.