Order Date – 01 May 2025

Panties: SS Enterprises Vs Office of the Commissioner, Central Tax Delhi West & Anr.

Facts –

• The Petitioner, SS Enterprises, challenged the Order-in-Original dated 31.01.2025, passed by the Additional Commissioner imposing penalty alleging fraudulent availment of Input Tax Credit (ITC) through goods-less invoices from two firms linked to Ms. Aaarti Kapoor.
• It was claimed that the personal hearing notice was received late. By the time of receipt, two out of the three scheduled hearing dates (13.01.2025 and 16.01.2025) had already passed.
• Thus, the petitioner argued it was effectively deprived of a fair chance to be heard.

Issue –

• Whether the impugned order suffers from a violation of natural justice due to inadequate opportunity for personal hearing?

Order –

• The Hon’ble High Court observed that the notice was in fact received, well in time for appearance in the personal hearing on 21st January 2025. Further submission on behalf of the Petitioner is that three personal hearings have not been given to the Petitioner.
• In fact, a perusal of Section 75(5) of the Central Goods and Service Tax Act, 2017 (hereinafter, ‘CGST Act’) would show that the said provision merely contemplates that the maximum adjournments shall be given for three times but does not in effect mean that three hearings have to be given.
• The personal hearing notice having been received by the Petitioner and the Petitioner having not availed of the hearing, cannot now be permitted to raise a grievance in respect thereof, against the Department.
• The Court directed that the petitioner shall file an appeal under Section 107 of the CGST Act before the Appellate Authority.