Delhi HC orders Re-Adjudication in GST matter due to Verification Deficiency by Proper Officer [Read Order]

The Delhi High Court has directed a re-adjudication in a Goods and Service Tax ( GST ) matter, citing the failure of the proper officer to adequately verify the petitioner’s submissions.

The petitioner impugned  both Show Cause Notice ( SCN ) dated 06.09.2023 and the subsequent SCN dated 29.09.2023 seeking to create a demand under Section 73 Central Goods and Services Tax Act, ( CGST ) 2017.

According to the petitioner, the SCN are bereft of any details and are not in inconsonance with law. This argument is supported by the department’s withdrawal of the SCN dated September 6, 2023, as per the order dated December 15, 2023, leaving only the SCN dated September 29, 2023, for adjudication.

The counsel for the respondent Ms. Shaguftha Hameed, informed that by order dated 31.12.2023, the SCN has also been adjudicated upon and an order passed.

Upon reviewing the order dated December 31, 2023, it is evident that a demand was issued against the petitioner. The demand was made because the petitioner’s response was deemed incomplete and lacked adequate supporting documents. The petitioner was unable to provide satisfactory explanations or justifications for their response.

The petitioner’s response to the SCN indicated a detailed and comprehensive reply addressing each point raised therein.

In light of this, a division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja observed that the order dated 31.12.2023 cannot be sustained and was accordingly set aside.

The matter has been remitted to the proper officer for re-adjudication of the SCN dated 29.09.2023 by taking into consideration the petitioner’s detailed response.  

For further clarification be necessary, the proper officer was directed to communicate with the petitioner, who is expected to promptly provide any required explanations or documents. Thereafter, the officer shall pass a speaking order after giving an opportunity of personal hearing within 4 weeks.

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