Contentions raised by the taxpayers not considered in the Order: High Court quashed the proceeding

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Contentions raised by the taxpayers not considered in the Order: High Court quashed the proceeding

Honble Calcutta High Court in M/s. Chandra Udyog  Vs – P.M. The Assistant Commissioner, CGST & CX Shibpur Division, Howrah CGST Commissionerate & Ors wherein the refund rejection order passed in RFD 06 was totally quashed for being a non speaking one line order without considering the detailed submission of the petitioner in reply to the SCN issued for rejection of refund of balance on electronic cash ledger to the extent of Rs 6 crore.

The Court observed as under:

‘Considering the submission of the parties and on perusal of the aforesaid impugned order dated 30th May, 2022, I find that the allegation of the petitioners that the aforesaid impugned order is not a speaking order is substantially correct and it does not deal with the objection and contentions raised by the petitioner against the impugned show cause notice. Considering the submission of the parties this writ petition being WPA 12256 of 2022 is disposed of by setting aside the aforesaid impugned order dated 30th May, 2022 and the matter is remanded back to the respondent authority concerned to pass a fresh order after considering the contention/issues raised by the petitioners in its aforesaid reply dated 17th May, 2022….’

The writ was entertained even when appellate remedy was available on the grounds of gross negligence in passing one line rejection order by the Department.

The above observation will not  only be relevant in the cases under the GST regime but also in the cases in the Income Tax Regime.

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