📰 𝗖𝗵𝗵𝗮𝘁𝘁𝗶𝘀𝗴𝗮𝗿𝗵 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗜𝗻𝘁𝗲𝗿𝗶𝗺 𝗥𝗲𝗹𝗶𝗲𝗳 𝗚𝗿𝗮𝗻𝘁𝗲𝗱 𝗶𝗻 𝗚𝗦𝗧 𝗜𝗻𝗽𝘂𝘁 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁 𝗖𝗮𝘀𝗲

📢 The court directed, "No further adverse orders shall be passed against the appellant until the next hearing, pending a response from the respondent."

🔍 𝗙𝗮𝗰𝘁𝘀: • 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Sri Balalji Metals Minerals Private Ltd. vs Union of India • 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿: WPT No. 170 of 2023 • 𝗖𝗼𝘂𝗿𝘁: Chhattisgarh High Court • 𝗗𝗮𝘁𝗲: 23-Jun-2023

𝗜𝘀𝘀𝘂𝗲: Sri Balalji Metals Minerals Private Ltd. claimed entitlement to an input tax credit (ITC) for taxes paid on services from a supplier in the 2018-2019 fiscal year, as recorded in the GST portal. Despite reflecting the tax paid in its inward return, the company received notices from the CGST and DGGI alleging that the supplier was "non-existent." The appellant argued that multiple investigations on the same issue by different agencies were unwarranted, especially in the absence of an audit. No ITC denial order has been passed yet.

Court’s Solution: Acknowledging the appellant's concerns, the court instructed that no adverse orders should be issued against Sri Balalji Metals until the next hearing. The respondent was asked to submit a reply to the appellant’s application for interim relief/stay.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The court granted interim protection to the appellant, preventing adverse actions by tax authorities and awaiting responses from the Union of India. The next hearing will further examine the entitlement to ITC, procedural fairness, and the limits of multi-agency investigation.

📜 This case highlights procedural issues surrounding GST investigations, underscoring the need for careful agency coordination to avoid undue burdens on businesses. The final decision will shed light on the judicial view regarding fair investigation practices and ITC rights. Team GSTpanacea 7503031378