M/S Sukh Lal Sheo Narain vs. Union Of INDIA And Others
Held
The Court directed Respondent No. 2, the Commissioner of Central Goods and Services Tax, to decide the representations filed by the petitioner within a period of one week from the date of the order. This decision was to be communicated through a speaking order. The Court acknowledged the respondents' assertion of fraudulent availment of input tax credit but focused on the procedural lapse of not deciding the petitioner's representations. The Court's reasoning was based on ensuring a timely and reasoned response from the tax authorities to the petitioner's grievances. The ratio decidendi is that tax authorities must decide representations filed by taxpayers within a reasonable time and in a speaking manner, especially when such decisions impact the taxpayer's ability to avail input tax credit. The Court did not delve into the merits of the alleged fraudulent availment of input tax credit.
Facts
The petitioner, M/s Sukh Lal Sheo Narain, filed a writ petition challenging the action of the respondents (Union of India and another) in blocking their input tax credit. The petitioner had made representations dated February 10, 2020, and February 24, 2020, regarding this issue, but no decision had been taken by the respondents. The respondents, represented by counsel, stated that the case involved fraudulent availment of input tax credit. The High Court of Punjab and Haryana at Chandigarh was seized of this matter.
Key Issues
1. Whether the respondents have acted arbitrarily by not deciding the representations filed by the petitioner concerning the blocking of input tax credit, thereby violating the petitioner's right to a timely decision? (Question of law) Petitioner's contention: The petitioner argued that despite submitting representations on February 10, 2020, and February 24, 2020, the respondents had failed to take any decision, causing prejudice to their business operations. They sought a direction for the respondents to decide these representations. Respondents' contention: The respondents, through their counsel, stated that the case pertains to alleged fraudulent availment of input tax credit by the petitioner. No specific provision of law or precedent was cited in support of their argument regarding the delay in decision-making.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision : 15.6.2020 M/s Sukh Lal Sheo Narain ...... Petitioner Versus Union of India and another
...... Respondents CORAM : HON'BLE MR. JUSTICE AJAY TEWARI HON'BLE MR. JUSTICE JASGURPREET SINGH PURI *** Present :- Mr. Vikas Lochab, Advocate for the petitioner. *** AJAY TEWARI, J. (ORAL) By this petition, the petitioner has challenged the action of the respondents in blocking the input tax credit of the petitioner. Notice of motion. Mr. Sunish Bindlish, Advocate accepts notice on behalf of the the respondents. Today learned counsel for the petitioner has stated that he has moved the representations dated 10.2.2020 dated 24.2.2020 in this regard but no decision has been taken thereon on behalf of the respondents. Learned counsel for the respondent states that actually this is a case of fraudulent availment of input tax credit. Be that as is may. We deem it appropriate to direct the respondent No.2- The Commissioner of Central Goods and Services Tax, GST Bahwan, Block C & D, New CGO Complex, N.H.IV, Faridabad, to POOJA SHARMA 2020.06.16 02:58 I a
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