No Opportunity Given to reply to GST SCN: Delhi HC quashes Demand Order u/s 73 of CGST Act [Read Order]

The Delhi High Court has quashed the demand order issued under the Central Goods and Services Tax (CGST) Act, 2017 as there is no opportunity given to file a reply to the Show Cause Notice.

M/s Services International Company received a Show Cause Notice from the Goods and Services Tax (GST) department demanding Rs 3,86,25,289 for the financial year 2018-19. The company requested an extension of time to file a reply due to their accountant's illness but reportedly never received a response on whether the adjournment request was accepted. The GST department then proceeded to confirm the demand against the company.

Gaurav Gupta, counsel appearing for the petitioner company, argued that they were not given a fair opportunity to respond to the Show Cause Notice. They requested the court grant them a chance to file a reply and have the demand reconsidered.

The department claimed that the company did not appear for a personal hearing scheduled for April 18, 2024, and their previous request for an extension lacked justification.

Acknowledging the exceptional circumstances, the division bench of Justices Sanjeev Sachdeva and Ravinder Dudeja allowed M/s Services International to file a reply to the Show Cause Notice within 30 days.

The court set aside the demand order issued by the GST department and directed them to reconsider the case after providing the petitioner with a proper hearing. The court clarified that it has not commented on the merits of the case, and both parties can still present their arguments during the re-adjudication process.

To Read the full text of the Order CLICK HERE

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