Taxpayerโs Reply cannot be dismissed by proper officer without proper justisicstion
The case involves a dispute over a Show Cause Notice (SCN) issued by the tax authorities, proposing a demand of ๐๐ฌ.11,50,530.00 against the petitioner. The key points of the judgment are:
๐๐ฌ๐ฌ๐ฎ๐ ๐๐๐ข๐ฌ๐๐:
The petitioner challenged the order that disposed of the SCN, which included a penalty. The order was passed under Section 73 of the Central Goods and Services Tax Act, 2017.
๐
๐๐๐ญ๐ฌ:
1. The petitioner had submitted detailed replies to the SCN, but the order did not consider these replies and was deemed cryptic.
2. The SCN raised several issues, including under-declaration of output tax and excess claim of Input Tax Credit (ITC).
3The Proper Officer stated that the ๐๐๐๐๐๐๐๐๐๐’๐ ๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐๐๐
, leading to the creation of a demand for tax/interest.
๐๐จ๐ฎ๐ซ๐ญ ๐๐ฎ๐๐ ๐ฆ๐๐ง๐ญ:
The Delhi High Court found that the Proper Officer did not consider the petitioner’s detailed replies and supporting documents.
The court held that the Proper Officer should have at least considered the replies on their merits before forming an opinion.
Since the Proper Officer ๐
๐๐
๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐ ๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐ ๐
๐๐๐๐๐
๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐
, ๐๐๐ ๐๐๐๐๐ ๐๐๐ ๐๐๐๐
๐ ๐๐๐ ๐๐๐๐๐๐๐๐
๐๐๐
๐๐ ๐๐๐
๐๐๐๐๐๐๐๐
๐๐๐ ๐บ๐ช๐ต ๐๐๐ ๐๐-๐๐
๐๐๐
๐๐๐๐๐๐๐.
๐๐จ๐ง๐๐ฅ๐ฎ๐ฌ๐ข๐จ๐ง:
The court emphasized the need for the Proper Officer to consider the taxpayer’s replies and supporting documents before making a decision.
The petitioner has been granted 30 days to file a further reply to the SCN.ย A fresh speaking order must be passed by the Proper Officer after a personal hearing, in accordance with the law and within the prescribed time under Section 75 (3) of the Act.
The court did not comment on the merits of the case, leaving all rights and contentions of the parties reserved.
The challenge to Notification No. 56 of 2023 regarding the extension of time remains open.
This judgment highlights the importance of due process and theย consideration of allย submitted documents andย replies in theย adjudicationย of tax-related disputes.
๐๐ฆ๐ญ๐ฉ๐ช ๐๐: ๐๐ถ๐ต๐ถ๐ณ๐ฆ ๐๐ฆ๐ฏ๐ฆ๐ณ๐ข๐ญ๐ช ๐๐ฏ๐ฅ๐ช๐ข ๐๐ฏ๐ด๐ถ๐ณ๐ข๐ฏ๐ค๐ฆ ๐๐ฐ๐ฎ๐ฑ๐ข๐ฏ๐บ ๐๐ช๐ฎ๐ช๐ต๐ฆ๐ฅ ๐๐ด ๐๐ฐ๐ฐ๐ฅ๐ด ๐๐ฏ๐ฅ ๐๐ฆ๐ณ๐ท๐ช๐ค๐ฆ ๐๐ข๐น ๐๐ง๐ง๐ช๐ค๐ฆ๐ณ ๐๐ข๐ณ๐ฅ 203 [๐.๐. (๐)- 7417/2024 & ๐๐ ๐๐๐๐. 30942-43/2024 ๐ฅ๐ต. 22 ๐๐ข๐บ 2024]
The Copy Of the Order is as Under:
