High Court Orders Fresh Adjudication in GST ITC Dispute; Allows Re-Submission of Documents

The Himachal Pradesh High Court ruled in favour of a company, R.S. Polymers, by sending the case back to the tax authorities with directions to fresh adjudicate the case if the petitioner furnishes all relevant submissions/objections in response to the impugned notice.

The petitioner, R.S. Polymers, had claimed that the tax authorities had not considered their submissions/objections made in response to the liability notice DRC-01A dated January 06, 2025, (Annexure P-10) and Show Cause Notice DRC-01 dated August 19, 2025, before proceeding in the case in the form of the impugned summary show cause notice/detailed notice dated August 19, 2025, (Annexure P-15). Hence, the petitioner challenged the same before the Himachal Pradesh High Court, claiming they are rightly entitled to the benefit of Input Tax Credit (ITC).

The Himachal Pradesh Court had to decide on the issue of “whether payments on purchases in question, along with GST, were actually paid to the supplier (RTP) and whether the transactions and purchases in question are genuine and supported by valid documents and whether transactions and purchases in question were made before or after the cancellation of the supplier’s registration, as well as compliance with statutory obligations by the petitioner regarding verification of the identity of the supplier (RTP), in accordance with law, as applicable.”

When the court analysed the case, it disposed of the writ petition by setting aside the impugned DRC-01 Notice and remanded the matter to the tax authorities with directions that if the petitioner afresh submits all the relevant documents providing the made purchases and transactions in question were genuine and were made prior to the GST cancellation of the supplier within the time limit of 30 days from May 12, 2026, in response to the DRC-01A notice, dated January 06, 2025, then it must reconsider the case on merits and pass a justified/reasoned order within 06 weeks from the date of submissions made by the petitioner.

However, in case the petitioner fails to submit relevant submissions/objections within the prescribed time limit, then the concerned tax authorities are permitted to take consequent legal action against the petitioner and proceed further in the case as per the law, considering the petitioner has no evidence to raise any objections to the present proceedings.