In a recent ruling, the Delhi High Court emphasized the importance of due consideration of petitioner responses by Goods and Service Tax ( GST ) Proper Officers before forming opinions. The court directed the officer to intimate the petitioner about any required details or documents and ensure their fair assessment.
The case pertained to an order dated 29.12.2023, in which a show cause notice dated 26.09.2023 proposed a significant demand against the petitioner, totaling Rs. 32,07,115.80, inclusive of penalties. This order was issued under Section 73 of the Central Goods and Services Tax Act, 2017.
During the proceedings, the counsels appeared for the petitioner, Mr. Rakesh Kumar and Mr. P.K. Gambhir, highlighted that a comprehensive reply dated 13.12.2023 had been submitted to the show cause notice. However, the impugned order failed to consider this reply adequately. Instead, it summarily dismissed the petitioner’s explanation, alleging it lacked merit.
The petitioner’s legal team argued that the proper officer had a duty to assess the petitioner’s response on its merits before forming any conclusions. They pointed out that the officer’s failure to engage with the petitioner’s submission indicated a lack of due diligence.
Moreover, the petitioner’s counsel contended that if the officer deemed the reply incomplete or required additional details, they should have communicated this to the petitioner for clarification. However, no such opportunity was provided to the petitioner, as evidenced by the case record.
A division bench comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja observed that the impugned order merely stated that the petitioner had not provided the necessary details. Consequently, the court directed the Proper Officer to promptly inform the petitioner about any required documents or information within one week.
Upon receiving this intimation, the petitioner was instructed to furnish the requested explanation and documents within a week. Subsequently, the Proper Officer was directed to re-adjudicate the show cause notice within two weeks, ensuring the petitioner had an opportunity for a personal hearing.
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