GST UPDATE

???? Desk of CA. Praveen Sharma Series-559 ????

DELHI HIGH COURT IN THE CASE OF Khemka Aviation Private Limited Section 73 of the CGST Act, 2017

?The petitioner challenges an order dated 30.04.2024, passed under Section 73 of the CGST/DGST Act, 2017, regarding FY 2018-19, alleging it is unreasoned. The order followed a Show Cause Notice (SCN) issued on 13.12.2023, questioning the petitioner on inadmissible input tax credit (ITC) for motor vehicle services and airline travel. 

?The petitioner claimed no ITC was availed for these services, supported by a detailed response. However, the Adjudicating Authority rejected the response as unsatisfactory without providing reasoning.

?The court observes that such orders, issued just before the limitation period's expiry, seem to bypass statutory deadlines and often lack proper reasoning, resulting in numerous writ petitions. The court has issued a notice and directed the respondents to file affidavits detailing the number of such orders, writ petitions, and officer-wise order counts passed during the last three days of the extended limitation period.

Link: https://www.linkedin.com/pulse/desk-ca-praveen-sharma-series-559-delhi-high-court-73-6pegc 

CA. Praveen Sharma

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