Pidilite Industries Limited v. Union of India & Ors.
Facts:
The petitioner, a manufacturer, transitioned input tax credit into GST regime by filing TRAN-1 and TRAN-2 forms.
An audit was conducted, followed by a show cause notice demanding recovery of transitional credit with interest and penalty.
Verification of records was carried out by departmental officers, but the verification reports were not furnished to the petitioner.
Despite request and objections, the adjudicating authority passed an order confirming demand without granting opportunity to respond to such reports.
Court Decision:
The Court held that non-furnishing of verification reports, which formed the basis of the impugned order, amounted to breach of principles of natural justice.
It observed that conclusions were drawn without giving the petitioner an opportunity to respond to the verification findings.
The Court also noted that the order was passed in haste without complete verification of records.
Accordingly, the impugned order dated 5 February 2025 was quashed and set aside, and the matter was remanded for de novo adjudication with directions to furnish verification reports and grant a proper hearing.
Other Case Law
Joint Commissioner (Intelligence & Enforcement) & Anr. vs Lakshmi Mobile Accessories
Show Cause Notice – Clubbing of multiple financial years in a single show cause notice under Section 74 of the CGST Act, 2017 – requirement of separate adjudication for each financial year.
Facts:The respondent-assessee challenged a show cause notice dated 29.07.2024 is...
Read MoreHoosein Kasam Dada (India) Ltd. v. State of Madhya Pradesh
Whether amendment imposing pre-deposit condition for appeal applies retrospectively and affects vested right of appeal
Facts :The assessee filed a sales tax return in 1947 and assessment proceedings ...
Read MoreCommissioner of Trade and Tax, Delhi v. Shanti Kiran India (P) Ltd.
Entitlement of Input Tax Credit to purchasing dealer despite non-deposit of tax by selling dealer under DVAT (Section involved: Section 9(1) and Section 9(2)(g) of the Delhi Value Added Tax Act, 2004)
Facts The issue before the Court was whether purchasing dealers who paid ta...
Read More