Judgment
2026:HHC:15354 IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA CWP No.3858 of 2024 Date of decision: 07.05.2026 M/s Saraswati Spinning and Weaving Mills. ...Petitioner.
Versus State of Himachal Pradesh & Ors. …Respondents.
Coram Hon’ble Mr. Justice Vivek Singh Thakur, Judge.
Hon’ble Mr. Justice Ranjan Sharma, Judge.
Whether approved for reporting?1 For the petitioner :
Mr.
J.S.
Bedi, Advocate with Mr.
Goverdhan Lal Sharma, Advocate.
For the respondents :
Mr. Anup Rattan, Advocate General with Mr. Sushant Keprate, Additional Advocate General, for respondents No.1-4/State.
:
Mr. Vijay K. Arora, Senior Advocate with Ms. Godawari and Mr. Hitansh Raj, Advocates, for respondent No.5-CGST.
:
Mr.
Bharat Bhushan, Senior Panel Counsel, for respondent No.6-UOI.
Vivek Singh Thakur, Judge
Petitioner has approached this Court seeking following main substantial relief(s):- “i.
For issuance of a writ in the nature of mandamus directing respondents not to proceed further in pursuance to notice, summons issued by Respondent no.3 along with intimation of tax ascertained payable under Section 74(5) in form DRC-01A dated 10.10.2023 & DRC-01 30.11.2023 for the period 2021-22 and DRC-01A dated 10.10.2023 (Annexure P-3 & P-4) and DRC-01 dated 12.01.2024 for the period 2022-23 (Annexure P-5 & P-6), as the show cause notice was issued without issuing ASMT-10 beside this show cause notice
1Whether the reporters of the local papers may be allowed to see the Judgment? Yes
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was issued without appreciating the factual and legal position as petitioner has already paid the tax to the sellers and in his possession all the documents required for claiming the ITC and the petitioner cannot be forced to do the impossible act that seller has discharged its tax liability or not.”
2.
It has been further submitted that after issuance of intimation of liability notice DRC-01A dated 10.10.2023 (Annexure P- 3), Show Cause Notice dated 30.11.2023 (Annexure P-4) for Financial Year 2021-2022, and DRC-01A undated (Annexure P-5), Show Cause Notice dated 12.01.2024 (Annexure P-6) for Financial Year 2022-2023, the petitioner had submitted detailed reply along with documents claiming entitlement to the benefit of Input Tax Credit. However, without considering the same, further proceedings in the form of impugned summary show cause notices/detailed notices dated 10.10.2023 (Annexure P-3), 30.11.2023 (Annexure P-4) for Financial Year 2021- 2022, and Annexure P-5, 12.01.2024 (Annexure P-6) for Financial Year 2022-2023, were issued, which have been assailed in the present petition.
3.
It has been further submitted that the petitioner would be satisfied, if the concerned authorities are directed to consider the claim/objections afresh along with documents filed/to be filed by or on behalf of the petitioner before the competent authority in response to the aforesaid summary show cause notices/detailed notices specifically dealing that whether payments on purchases in question, along with GST, were actually paid or not to the supplier (RTP) and whether the transactions and purchases in question are genuine and supported by
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valid documents, and whether transactions and purchase in question were made before or after the cancellation of the supplier’s registration, as well as compliance with statutory obligations by the petitioner regarding verification of the identity of the supplier (RTP), in accordance with law, as applicable.
4.
It has been further submitted that, if upon consideration of the relevant documents, it is found that all purchases and transactions are genuine and supported by valid documents and were made prior to the cancellation of the supplier’s registration, the petitioner be granted the benefit of Input Tax Credit in question.
5.
Learned Advocate General submits that, in case, the petitioner files a fresh response to the summary show cause notices/detailed notices before the competent authority along with relevant documents to substantiate the claim of petitioner, the competent authority shall decide the same within a reasonable time.
6.
In view of above, the present petition is disposed of by directing the competent authority to consider the objections along with documents, if so filed, within 30 days from today in response to the show cause notices/detailed notices dated 10.10.2023 (Annexure P-3), 30.11.2023 (Annexure P-4) for Financial Year 2021-2022, and undated Annexure P-5, 12.01.2024 (Annexure P-6) for Financial Year 2022- 2023, by keeping in view the aforesaid submissions made by the petitioner and to pass an appropriate speaking and reasoned order
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thereupon within 06 weeks from the date of filing of such objections/response in accordance with law. In case no objections are filed within 30 days in response to the show cause notices/detailed notices, the competent authority shall proceed further in accordance with law, treating that the petitioner has nothing to say in response to the said notices.
7.
Petition is disposed of in aforesaid terms along with pending applications, if any.
(Vivek Singh Thakur) Judge
(Ranjan Sharma) Judge 7th May, 2026 (Pardeep)