M/S Ramada Engineering Industry vs. Union Of INDIA & Ors.
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Cause title — parties, addresses and appearances
O R D E R % 15.07.2024 CM No. 39283/2024 (Exemption)
Exemption is allowed, subject to all just exceptions.
The application stands disposed of. W.P.(C) 9577/2024 and CM No.39282/2024
The petitioner has filed the present petition, inter alia, impugning the summary of the show cause notice dated 22.05.2024 (hereafter the impugned SCN) issued by respondent no.3. 4. Mr Maggu, learned counsel appearing for the petitioner submits that 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 03/07/2025 at 19:03:15
the SCN sets out two figures and therefore, the petitioner is unable to respond thereto since it is unclear to the petitioner as to what is the allegation against it that needs to be addressed. He points out that the last tabular statement set out in the impugned SCN proposes a total demand of ₹15,72,948. However, a tabular statement prior to that proposes a recovery of ITC which is quantified at ₹6,05,630/-.
A plain reading of the impugned SCN indicates that it set out three tabular statements. The first table is as under:
“1. Excess claim of ITC: The excess input tax credit (ITC) claimed on account of non-reconciliation of information Under Sec 16(2)(c) every registered person shall be entitled to take credit of ITC on supply of goods or services to him subject to the condition that the tax charged in respect of such supply has been actually paid to the Government either in cash or through utilization of ITC admissible in respect of such supply. It is observed that the taxpayer has not correctly availed input tax on his inward supplies on reconciliation of turnovers in GSTR-09. Scrutiny of ITC availed: S. No. Description SGST CGST IGST CESS Total 1 2 3 4 5 6 7 1 ITC in the current FY as per Table 8A of GSTR-09 2661982 2661982 0 0 5323964 2 ITC from I (GSTR-2A/6G of GSTR-09) 0 0 0 0 0 3 ITC from import (GSTR-2A/8G of GSTR-09) 0 0 0 0 0 4 ITC availed against Inward Supplies liable to Reverse Charge (RCM 4A(3) [other than 4A(1) & 4A(2)] 0 0 0 0 0 5 Reversals in Table 4B of GSTR- 3B 0 0 0 0 0 6 ITC carried forward from current FY to subsequent FY, Table 8C of 0 0 0 0 0 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 03/07/2025 at 19:03:15
GSTR-09 7 ITC Available for use in the current FY (S. No. 1+2+3+4-5-6) 2661982 2661982 0 0 5323964 8 ITC availed in current FY as per 4C of GSTR-3B 2766152 2766152 0 0 5532304 9 Net excess ITC availed (S. No. 8- 7) 104170 104170 0 0 208340
The second table is as under: ITC claimed from cancelled dealers, return defaulters & tax non prayers: Under Sec 16(2)(c) every registered person shall be entitled to take credit of ITC on supply of goods or services to him subject to the condition that the tax charged in respect of such supply has been actually paid to the Government either in cash or through utilization of ITC admissible in respect of such supply. However as seen from the office records, it is observed that you have taken ITC from the tax payers who have not paid tax on their outward supplies to you. S. No. Issue SGST CGST IGST CESS Total 1 2 3 4 5 6 7 1 Supplier registration cancelled before date of invoice 302815 302815 0 0 605630 2 Supplier failed to file GSTR-3B and did not pay tax on the invoices declared in GSTR-01 0 0 0 0 0 3 Supplier filed GSTR- 3B with Nil turnover and did not declare or pay tax corresponding to the invoices declared in GSTR-01 0 0 0 0 0 4 Total (S.No.1+2+3) 302815 302815 0 0 605630 ”
The implications of the above tables are then summarized in the third table, as under: “Summary: The total tax payable on account of these deficiencies after giving credit to the payments made in cash and 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 03/07/2025 at 19:03:15
ITC adjusted in arrived as follows: S. No. Act Total tax due in (Excess claim of ITC) above Interest Penalty Total (3+4+5) 1 2 3 4 5 6 1 SGST 406985 338790 40699 786474 2 CGST 406985 338790 40699 786474 3 IGST 0 0 0 0 4 CESS 0 0 0 0 5 Total 813970 677580 81398 1572948 ”
It is clear from the above that the demand of ₹2,08,340/- is proposed to be raised on account of excess ITC claimed on scrutiny of the ITC availed.
The impugned SCN also sets out another table, which proposes a demand of ₹6,05,630/- on account of supplies received from a supplier whose registration had been cancelled prior to the date of the invoice.
The last table summarises the total proposed demand. It proposes a demand of ₹8,13,970/-, which is a sum total of the demand as set out in the first table (₹2,08,340/-) and the demand which is set out in the second table (₹6,05,630/-). The summary also indicates that the proper officer proposes to impose interest quantified at ₹6,77,580/- and a penalty quantified at ₹81,398/-. The contention advanced on behalf of the petitioner that the petitioner is unaware as to which proposed demand he has to address is ex facie unmerited.
The petition is, accordingly, dismissed with costs quantified at 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 03/07/2025 at 19:03:15
₹1,00,000/- to be deposited with the Delhi High Court Legal Services Committee within a period of two weeks from today. VIBHU BAKHRU, J SACHIN DATTA, J JULY 15, 2024 RK 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 03/07/2025 at 19:03:15
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.