Non-Consideration of Reply to SCN: Bombay HC says 'One More Case Where GST Dept Passed an Order Without Applying Mind' [Read Order]

A division bench of the Bombay High Court, while allowing a plea of the taxpayer aggrieved by the non-consideration of reply to the show-cause notice, has quashed the order and directed the GST department to re-do the adjudication process.

Granting relief to the assessee, Justices of K.R. Shriram & A.S. Doctor commented that “this is one more case where respondents have passed such order without applying its mind and without considering the records.”

The petitioner, Lakha Ram, received show cause notice dated 30th December 2020 but strangely signed on 24th December 2020 to which petitioner had replied vide letter dated 29th December 2020 reiterating the contents of letter dated 9th December 2019. When petitioner received a notice for personal hearing from Respondent No.2, petitioner replied by letter dated 18th June 2021 and brought to the notice of respondent that petitioner has already given a detailed reply and enclosed copy thereof to the said letter dated 18th June 2021. Notwithstanding this respondent has issued impugned order dated 30th June 2021 issued on 6th July 2021 by observing that there has been no reply from petitioner. A copy of reply is also annexed to the petition and there is no denial by way of affidavit in reply. According to Mr.Raichandani, it is petitioner’s case that tax if any was payable on reverse charge basis and that has not been considered at all in the impugned order.

After considering documents and arguments from both sides, the bench held that “We are satisfied that petitioner had responded to the show cause notice and the same should have been considered and dealt with in the impugned order dated 6th July 2021. Respondent No.2 not having done that, impugned order requires to be quashed and set aside, which we hereby do. The matter is remanded for denovo consideration. Before passing any order, which shall be within eight weeks from today, petitioner shall be given a personal hearing, notice whereof shall be given atleast seven working days in advance. If petitionerwish to file any written submissions, petitioner may do so within three working days of the personal hearing.”

To Read the full text of the Order CLICK HERE

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