Brief facts
An order was passed, confirming demand in respect of denial of ITC to the petitioner on procurement from suppliers whose GST registrations were cancelled retrospectively.
The petitioner requested for a right to cross-examine the witnesses, whose statements were relied upon, as also the authors of documents which was sought to be relied upon by the proper officer during adjudication. However, such request was denied on account of paucity of time. Yet, the impugned order was passed.
Judgment of the High Court of Delhi
[dated April 16, 2024 from WP(C) No. 5342 of 2024 in Akshit Petrochem Private Limited v. Government of NCT of Delhi]
Denial of the right to cross-examine can cause grave and serious prejudice. This view was also upheld in the judgment of the Co-ordinate Bench of the High Court of Delhi dated 30.01.2024 in WP (C) 15808/2022. Such a right cannot be declined due to paucity of time.
Analysis / Comments
In similar instances where ITC is denied on purchases from cancelled dealers, the taxable person should seek cross-examination of witnesses or authors of relied upon documents as a matter of right and use such opportunity judiciously.
