Shine Pharmaceuticals Ltd. v. Joint Commissioner of Revenue, Large Taxpayer Unit & Ors.

Background of the Case

This case concerns the duty of GST adjudicating and appellate authorities to properly examine statutory return data available on the GST portal before confirming tax demands. The dispute arose when the petitioner, Shine Pharmaceuticals Ltd., was issued a show cause notice under Section 73 of the CGST Act alleging various discrepancies in its GST compliance.

The show cause notice proposed tax demand on three separate grounds. Firstly, the department alleged excess availment of Input Tax Credit (ITC). Secondly, it alleged short payment of GST on outward taxable supplies. Thirdly, it alleged wrongful availment of ITC requiring reversal under the provisions of the GST law.