Order Date – 05 May 2025

Parties: Pret Study by Janak Fashions Private Limited Vs Assistant Commissioner, CGST

Facts –

• The Petitioner, Pret Study by Janak Fashions Pvt. Ltd., challenged the order dated 28.01.2025 passed by the Assistant Commissioner, CGST Delhi East, which confirmed a demand of wrongly availed Input Tax Credit along with equivalent penalty and interest.
• The petitioner claimed denial of a proper hearing. Though hearings were scheduled on 13th, 14th, and 15th January 2025, their counsel attempted to join only on 15th January 2025 at 12:00 PM, and was allegedly not granted access.
• However, the petitioner did not file any reply to the Show Cause Notice dated 3rd August 2024, despite prior notice and the opportunity for hearing.

Issue –

• Whether the impugned order confirming ITC demand and penalty was liable to be quashed for want of proper hearing and violation of natural justice?

Order –

• The Hon’ble High Court observed that it is clear that the Petitioner has not been diligent in filing the reply and attending the hearings.
• The impugned order is clearly an appealable order under Section 107 of the Central Goods and Service Tax Act, 2017. Considering the fact that (i) The Department has given the show cause notice and the personal hearing notices to the Petitioner; (ii) The Petitioner has not been diligent; the Department cannot be held to blame for not giving a proper hearing.
• The petition is disposed of with the liberty to the Petitioner to avail its appellate remedies within 30 days along with the pre-deposit.