Case Title: Delhi MSW Solutions Limited v. Assistant Commissioner of State Tax & Ors.
Court: High Court of Delhi
Petition Number: W.P.(C) 4636/2025 & CM Appl. 21436/2025
Category of Dispute: Input Tax Credit (Excess availment)
Date of Judgment: 15.04.2025
Relevant Sections: Section 16, Section 73/74, Section 161 – CGST Act, 2017; Article 226 – Constitution of India
Bench: Justice Prathiba M. Singh & Justice Rajneesh Kumar Gupta
Facts of the Case (Paras 2–5)
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The Petitioner challenged the impugned order dated 28.02.2025 confirming a demand of ₹1,60,35,990 (Para 2).
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A Show Cause Notice (SCN) dated 19.11.2024 was issued alleging excess availment of ITC (Para 3).
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The Petitioner claimed that despite filing a detailed reply, the adjudicating authority ignored it (Para 3).
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The Assistant Commissioner clarified before Court that the reply was indeed considered, as the initial SCN demand of ₹7.74 crores was reduced to ₹1.60 crores (Para 4).
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It was also disclosed that a rectification application under Section 161 CGST Act had been filed and was pending (Para 4).
Question(s) in Consideration (Paras 3, 5)
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Whether the adjudicating authority failed to consider the reply to the SCN before confirming demand?
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Whether the pendency of rectification under Section 161 should be allowed to conclude before Court interferes?
Observations of the Court (Paras 5–7)
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The Court noted that the Petitioner did not disclose pendency of rectification in the writ petition (Para 5).
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The Court held that since rectification proceedings are already filed, the same should be decided with a personal hearing (Para 6).
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Rights and remedies of the Petitioner in respect of the impugned order and rectification outcome remain open (Para 7).
Judgment of the Court (Paras 6–8)
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The Court directed the concerned officer to provide a personal hearing and pass an order on the rectification application in accordance with law (Para 6).
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The writ petition was disposed of with liberty to the Petitioner to pursue remedies after rectification (Para 7–8).
Between Fine Lines
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The Petitioner challenged ITC demand citing non-consideration of reply.
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The Department clarified that reply was considered and demand reduced.
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A pending rectification under Section 161 was revealed.
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The Court directed personal hearing on rectification before final outcome.
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Petition was disposed, leaving remedies open.
Summary of Referred Cases
(No external case laws were referred in this judgment, hence not applicable.)
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
