The Himachal Pradesh High Court has refused a GST demand order of ₹16.72 lakh that was charged on Shivalik Containers Pvt. Ltd. for the alleged wrong utilisation of Input Tax Credit (ITC).
As per the court, the subsequent tax filing, including an interest via the supplier, could not be overlooked while analysing the sustainability of a demand raised against the receiver, despite these compliance taking place post a delay of exceeding than 5 years. While hearing a writ petition submitted by the company, a Division Bench of Justice Vivek Singh Thakur and Justice Jiya Lal Bhardwaj passed the order.
The petitioner contested an SCN along with the consequential order on 4 January 2023. The order had been issued under section 74 of the CGST Act, 2017.
On the foundation that the applicant had taken ITC as the receiver of goods, the demand was raised. Though the supplier is not able to pay the related tax at the pertinent time.
The Revenue, due to the delay of more than 5 years in payment by the supplier, made the ITC irregular. It claimed that the Show Cause Notice (SCN) was valid when issued.
The court denied the same method. It ruled that the forthcoming tax payment, including the interest by the supplier, M/s Shivalik Marketing, cannot be overlooked while analysing the demand against the receiver. The Bench mentioned that the instructions of the department considered that the supplier had submitted the due returns and released the tax obligation.
The court, concerning the same, mentioned that the claim of input tax credit (ITC) of the applicant needs reconsideration within the law. The HC set aside the GST demand. It asked the Assistant Commissioner, State Taxes and Excise, Nahan, to reopen and re-adjudicate the matter. In such terms, the writ petition was disposed of, including all the pending applications.
| Case Title | M/s Shivalik Containers Pvt. Ltd. Vs. Assistant Commissioner |
| Case No. | CWP No. 20174 of 2025 |
| For the Petitioner | Mr Vishal Mohan, Mr Parveen Sharma |
| For Respondent | Mr Sushant Keprate |
| Himachal Pradesh High Court | Read Order |
