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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Bhargav D.Karia, Pranav Trivedi
Multi Metal Industries – Appellant
Versus
Assistant Commissioner Ghatak – Respondent
ORDER :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr. Sahil Rao appearing for the petitioner and learned Assistant Government Pleader Ms. Shrunjal Shah for the respondents.
2. By this petition under Article 227 of the Constitution of India, the petitioner has challenged the Order-in-Original dated 23.1.2025 passed under Section 74 of the Gujarat Goods and Service Tax Act, 2017 (hereinafter referred to as ‘GST Act’ for short) by the Assistant Commissioner, Ghatak-21 (Ahmedabad) Range-6, Division-2, Gujarat.
3. Brief facts of the petition are as under:
3.1 The petitioner, a Partnership Firm, is engaged in the business of manufacturing and trading of Ferrous and Non-Ferrous Metal and Scrap. The petitioner Firm is registered with the GST Department since 1.7.2017.
3.2 Respondent No.1, the Assistant Commissioner Ghatak-21, Ahmedabad issued intimation in Form DRC-01A dated 22.7.2024 as per Rule 142(1A) of the Central/ State Goods & Service Tax Rules, 2017 (for short ‘GST Rules’).
3.3 As per the intimation, it was alleged that the petitioner had purchased goods during the Financial Year 2017-18 from various vendors whose registration had been cancelled suo-motu on retrospective basis and
Bona fide purchasers cannot have Input Tax Credit reversed solely based on supplier registration cancellations absent substantial evidence of fraud.
Input tax credit is not claimable unless the supplier has paid the applicable tax, as per Goods and Services Tax Act provisions.
A party may challenge an order under Article 227 of the Constitution only when fundamental rights are breached or if there's a violation of natural justice; otherwise, adherence to alternative remedi....
The failure to provide an opportunity for personal hearing before issuing adjudication orders constitutes a violation of the principles of natural justice, necessitating quashing of such orders.
The court underscored the necessity of adhering to principles of natural justice, requiring that administrative orders affecting rights must include clear reasoning and a fair opportunity for respons....
The court held that challenges to tax adjudications must be brought before the Appellate Authority rather than through writ petitions, affirming the alternative remedy available under the GST Act.
A registered person is not entitled to input tax credit if the claimed supplies are from non-existent firms, regardless of the validity of the supplier's GST registration at the time of transaction.
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