CONT. CAS(C) 751/2021, WP(C) 2420/2021 & WP(C) 4036/2021 Page 1 of 40

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

Reserved on: 1^st December, 2021

Date of Decision: January 11, 2022

+

CONT.CAS(C) 751/2021 & CM No.35806/2021

M/S. INDO INTERNATIONAL TOBACCO LTD. ... Petitioner

Through

Mr.S.Ganesh, Sr. Adv. with

Mrs.Anjali

J.

Manish,

Mr.Priyadarshi

Manish,

Ms.Kinjal Shrivastava, Advs.

versus

SHRI

VIVEK

PRASAD,

ADDITIONAL

DIRECTOR

GENERAL, DGGI & ORS.

..... Respondents

Through

Mr.N.Venkataraman, ASG with

Mr.Ravi

Prakash,

CGSC,

Mr.Chandrashekhar, Ms.Shruti

Shivkumar, Mr.Ram Narayan

and

Ms.Mallika

Joshi,

Advocates

+

W.P.(C) 2420/2021

M/S INDO INTERNATIONAL TOBACCO PVT. LTD

...... Petitioner

Through

Mr.S.Ganesh, Sr. Adv. with

Mrs.Anjali

J.

Manish,

Mr.Priyadarshi

Manish,

Ms.Kinjal Srivastava, Advs.

versus

ADDITIONAL DIRECTOR GENERAL, DIRECTORATE

GENERAL

OF

GOODS

AND

SERVICE

TAX

INTELLIGENCE & ORS.

..... Respondents

Through

Mr.N.Venkataraman, ASG with

Mr.Ravi

Prakash,

CGSC,

Mr.Chandrashekhar, Ms.Shruti

2022:DHC:123-DB

CONT. CAS(C) 751/2021, WP(C) 2420/2021 & WP(C) 4036/2021 Page 2 of 40

Shivkumar, Mr.Ram Narayan

and

Ms.Mallika

Joshi,

Advocates

+

W.P.(C) 4036/2021 & CM 12202/2021

M/S. SSM EXPORTS

..... Petitioner

Through

Mrs.Anjali

J.

Manish,

Mr.Priyadarshi

Manish,

Ms.Kinjal Srivastava, Advs

versus

COMMISSIONER OF CENTRAL EXCISE AND SERVICE

TAX AND CGST DELHI WEST. & ORS. ..... Respondents

Through

Mr.N.Venkataraman, ASG with

Mr.Ravi

Prakash,

CGSC,

Mr.Chandrashekhar, Ms.Shruti

Shivkumar, Mr.Ram Narayan

and

Ms.Mallika

Joshi,

Advocates

Mr.Anurag Ojha, SPC for R-4.

CORAM:

HON'BLE MR. JUSTICE MANMOHAN

HON'BLE MR. JUSTICE NAVIN CHAWLA

NAVIN CHAWLA, J.

1. The above two writ petition(s), being W.P.(C) 2420 of 2021 and

W.P.(C) 4036 of 2021, raise a common question of law and are

premised on the Circular, bearing D.O. F. No. CBEC/20/43/01/2017-

GST (Pt.), dated 05.10.2018, issued by the Central Board of Excise

and Customs, New Delhi (hereinafter referred to as the „CBEC‟), and

are therefore, being considered and disposed of by this common

judgment.

2022:DHC:123-DB

CONT. CAS(C) 751/2021, WP(C) 2420/2021 & WP(C) 4036/2021 Page 3 of 40

W.P.(C) 2420/2021

2. In W.P.(C) 2420 of 2021, it is the case of the petitioner that it is

engaged in the manufacturing and supply of tobacco products. It

obtained GST Registration on 21.10.2019 from the jurisdictional

Office situated at Gautam Buddh Nagar, Uttar Pradesh, as the

petitioner‟s firm was registered and had its principal place of business

within the jurisdiction of the said Commissionerate.

3. The petitioner commenced its commercial operations in the

month of December 2019.

4. On 19.03.2020, a search was carried out at the petitioner‟s

premises by the CGST Officers from Gautam Buddh Nagar. The

petitioner alleges that no shortcomings were noticed in the said search

operation. Thereafter, a Show Cause Notice dated 20.04.2020 was

issued by the Assistant Commissioner, Central Tax Division-I,

Gautam Buddh Nagar, Uttar Pradesh, calling upon the petitioner to

show cause why its refund claim, filed for the month of February 2020

under Section 54 of the Central Goods and Services Tax Act, 2017

(hereinafter referred to as the „CGST Act‟), be not rejected and the

alleged inadmissible credit amounting to ₹18,26,78,282/- (Rupees

eighteen crore twenty-six lakh seventy-eight thousand two hundred

eighty-two) be not recovered from the petitioner.

5. The Assistant Commissioner, Gautam Buddh Nagar, further,

vide its order dated 11.05.2020 passed under Section 83 of the CGST

Actcalled upon the ICICI Bank, where the petitioner maintained its

bank account, to supply the KYC documents along with the details of

2022:DHC:123-DB

CONT. CAS(C) 751/2021, WP(C) 2420/2021 & WP(C) 4036/2021 Page 4 of 40

the banki