2025 (7) TMI 461 - HC - GST

Challenge to petition alongwith summary order - blocking of ITC clamed - fictitious business entity/non-existent supplier - non application of mind by the respondent - violation of principles of natural justice - HELD THAT - Upon perusal of the materials this Court can visualise the non application of mind by the respondent in arriving at a conclusion that M/s.Hindustan Unilever Limited is a non-existant Company. Therefore this Court is inclined to set-aside the impugned order with terms imposed. The impugned order passed by the respondent dated 04.04.2025 is set aside - the matter is remanded to the respondent for fresh consideration - petition allowed by way of remand.

Summary

The Madras High Court, presided by Justice Krishnan Ramasamy, disposed of a Writ Petition challenging the respondent's order dated 04.04.2025 that disallowed Input Tax Credit (ITC) claimed by the petitioner on purchases from Tvl. Hindustan Unilever Limited, alleged to be a "fictitious business entity" and "non-existent supplier." The petitioner, engaged in FMCG retail and wholesale, contended the ITC was valid as reflected in GSTR 2A and supported by invoices. The Court found "non application of mind" by the respondent in concluding the supplier was non-existent and held the impugned order to be "arbitrary." The Court set aside the order and remanded the matter for fresh consideration, directing the petitioner to file additional replies within two weeks and the respondent to afford a personal hearing before deciding the matter "in accordance with law." The petition was disposed of with no costs.