Delhi High Court sets aside Tax Order u/s 73 of CGST Act over Procedural Errors [Read Order]

Recently the Delhi High Court has set aside a Tax order issued under Section 73 of the Central Goods and Services Tax Act, 2017 ( CGST Act ) and ordered fresh consideration into the matter citing procedural flaws.

The petitioner, Sahib Textiles Private Limited challenged an order issued against them under Section 73 of the CGST Act, 2017 and the Delhi Goods and Services Tax Act, 2017 ( DGST Act ) . The order imposed a tax demand of ₹88,89,593 due to alleged incorrect filing of tax on inward supplies.

The petitioner contested the order arguing that their response to the Show Cause Notice ( SCN ) was not properly considered, and that the order was issued by an officer different from the one who issued the SCN.

The bench consisting of Justice Vibhu Bakhru and Justice Sachin Datta found merit in the petitioner's arguments noting that the order did not adequately address the contentions raised in the petitioner's reply to the SCN and also that it was incorrectly stated that a personal hearing was granted to the petitioner when it was not.

As a result  the court set aside the impugned order and remanded the matter back to the concerned officer for fresh consideration.

The Court has given the petitioner three weeks to submit additional documents, and a proper opportunity to be heard is mandated. The court clarified that its decision did not address the merits of the tax dispute itself, leaving all rights and contentions of the parties open for future proceedings.

The petitioner’s side was represented by Adv. Abhishek Garg, Adv Yash G and Adv Ramesh Singh. The respondent was represented by Adv Rajeev Aggarwal.

To Read the full text of the Order CLICK HERE

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