2026-VIL-1218-DEL
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SGST High Court Cases

GST - Maintainability of writ petition against order confirming demand of Input Tax Credit - Recovery of Input Tax Credit availed on invoices of non-existent suppliers with interest and penalties – Petitioner sought to read down Section 155 on the ground that the Department had not returned certain seized records, which prevented them from establishing eligibility for credit - Whether the Court should entertain the challenge in writ jurisdiction and read down Section 155 - HELD - Section 155 places the burden of establishing eligibility for Input Tax Credit upon the person claiming it, and the grievance concerning unavailable records can be examined without reading down that provision, as the statutory allocation of the burden and the effect of the absence of particular documents are distinct questions. It is necessary to examine which records remain unavailable, their relevance to the disputed transactions, the prejudice occasioned by their absence and whether the material supplied or reconstructed was duly considered, and these questions require examination of the record and can appropriately be addressed in appeal - The Department's recorded inability to furnish the seized documents must form part of that consideration when assessing whether the statutory burden has been discharged - The Court is not inclined to entertain the challenge in writ jurisdiction. The petitioners are relegated to the statutory appeal under Section 107 – The petition is disposed of - Demand reflected in Form GST DRC-07 exceeding the demand confirmed by the order and the SCN - Section 75(7) of the CGST Act, 2017 - Petitioners contended that the demand reflected in Form GST DRC-07 exceeded the amount specified in the SCN and confirmed by the impugned order, contrary to Section 75(7) - Respondents produced a communication stating that steps were being taken to rectify the error, and acknowledged in the counter-affidavit that multiple summaries had been generated owing to a technical glitch in the GST portal - Whether the Respondents are to rectify the erroneous repetition of the demand in the Forms GST DRC-07 and how the pre-deposit for appeal is to be determined - HELD - In view of the stand taken by the Respondents, the erroneous repetition of the demand in the summaries is to be rectified, the corrected summaries must faithfully reflect the demand confirmed by the impugned order, and the necessary consequential corrections must be made on the common portal and communicated to the Petitioners - For the purpose of availing the appellate remedy, any statutory pre-deposit shall be determined in accordance with the applicable provisions on the basis of the demand actually confirmed by the impugned order, without giving effect to the erroneous repetition in the summaries - The Respondents are directed to rectify the Forms GST DRC-07 - The petition is disposed of
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