Section 16 of the CGST Act, 2017 — Input Tax Credit — The petitioner challenged the SCNs dated 29th September, 2021 alleging wrongful utilization of ITC in contravention of Sections 16, 20, 122, 132 of the Act. The counsel for the Department stated that the writ petition has been rendered infructuous on account of the fact that on 26th November, 2021 two separate orders were passed by the Adjudicating Authority. The Counsel of the petitioner informed that only last night, the copies thereof were e-mailed to the Petitioner by the Department. The court observed that the respondent has already dealt with the averments in the writ petition, which are yet to be examined by the High Court, and purportedly negatived them. The Court found this to be extraordinary. The court observed that if the adjudication of every SCN is only to confirm the demand raised, irrespective of the merits, the entire exercise would become an empty formality and that would be contrary to the legislative intent.

Held that:- The Hon’ble High Court set aside the two adjudication orders dated 26th November, 2021 and directed that the Petitioner will file its reply to the two final SCNs on or before 1st January, 2022. The Opposite Party after hearing the Petitioner, will issue fresh adjudication orders on or before 4th April, 2022.