2025 (5) TMI 1603 - HC - GST

Double demand raised in respect of the same period - Availability of alternative statutory remedy of appeal - Fraudulent availment of Input Tax Credit - HELD THAT - Since there are two demands in respect of the same period and there could be some overlap it is directed that the Petitioner may approach the Commissioner Appeals under Section 107 of the Central Goods and Services Tax Act 2017 in respect of both orders. However at this stage the pre-deposit shall be made in respect of only one of the demands i.e. the demand raised under order dated 02nd February 2025. Further while making the pre-deposit credit for the amount of Rs. 30, 00, 000/- which is already stated to have been deposited shall also be given. This shall be however subject to any further orders the Appellate Authority may pass. The Petitioner is permitted to file an appeal within a period of 30 days from today along with the pre-deposit of 10% after deduction of the amount of Rs. 30, 00, 000/-. If the same is filed within 30 days both the appeals shall be adjudicated on merits and shall not be dismissed on grounds for limitation. Accordingly both the writ petitions are disposed of in above terms.

Summary

The Delhi High Court, through Justices Prathiba M. Singh and Rajneesh Kumar Gupta, disposed of two writ petitions filed under Article 226 challenging orders dated 29th January and 2nd February 2025 by Additional Commissioners of CGST relating to demands for the period July 2017 to March 2023. The petitioner contended that the demands, amounting to Rs. 2,55,58,760 and Rs. 2,61,32,576 respectively, were based on the same transactions, resulting in impermissible double demand. The Court noted an allegation of fraudulent availment of Input Tax Credit involving a third party and acknowledged the petitioner's prior deposit of Rs. 30,00,000. Recognizing potential overlap, the Court directed the petitioner to approach the Commissioner Appeals under Section 107 of the Central Goods and Services Tax Act, 2017, for both orders. However, the petitioner was required to make a pre-deposit only for the demand under the 2nd February order, allowing credit for the Rs. 30,00,000 already paid.The petitioner was permitted to file appeals within 30 days with a pre-deposit of 10% of the demand after deducting the Rs. 30,00,000, with the assurance that appeals filed within this period "shall be adjudicated on merits and shall not be dismissed on grounds for limitation." The writ petitions and pending applications were disposed of accordingly.