The Hon’ble High Court of Delhi vide its order dated 6th July 2022 in the matter of Abhishek Gumber, Proprietor of M/s AG Enterprises Vs. Commissioner of GST, New Delhi in W.P.(C) 9629/2022 & CM No. 28733/2022, held that when the appeal has already been filed against the adjudication order, issuance of protective demand notice for the amount which is already in dispute in appeal and pending for disposal, is a premature show cause notice. Thus, the same is set aside.
The Petitioner filed the present writ petition praying for setting aside the Demand Notice dated 14.06.2022 [Form GST DRC – 01A] – Reference Number: ZD070622007441U, (“impugned Demand Notice”) issued by the Respondent (Sales Tax Officer Class II, AVATO, Ward No. 80, Delhi State Government of NCT of Delhi, Department of Trade and Taxes), wherein demand has been raised on Petitioner to deposit tax amounting to Rs. 12,56,640.00/- along with interest amounting of Rs. 4,52,390/- and penalty amounting to Rs. 12,56,640/- thereby totally amounting to Rs. 29,65,670/-.
Petitioner’s Plea: –
- It was submitted on the behalf of the petitioner that a show cause notice (SCN dated 08.02.2021) has already been adjudicated by the concerned authority vide order dated 12.05.2022 and the refund filed by the petitioner was rejected observing being filed on forged Input Tax Credit.
- Further the appeal has already been filed against the said adjudication order rejecting the refund claim, on 26.05.2022.
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