The unsigned show cause notice and assessment orders were revoked by the Delhi High Court (HC), presided over by Justices Vibhu Bharkru and Amit Mahajan. A total demand of Rs 49,26,623 has been made by the petitioner in this case, which challenges a judgement made by the adjudicating authority (assistant commissioner) under Section 73 of the Central Goods and Services Tax Act (CGST), 2017.
Section 73 of the CGST Act, 2017, allows for the determination of tax not paid, short paid, or incorrectly reimbursed, or input tax credit wrongfully claimed or used for any cause other than fraud, intentional deception, or suppression of facts.
The adjudication order must be issued in accordance with the provision no later than three years following the annual return deadline for the relevant year.
In the current instance, the court observed that it seems to be a generic letter stating that tax has not been paid or has been underpaid, refunds have been given in the wrong amount, or input tax credits have been mistakenly claimed or utilized. Obviously, this provides no information on the reasons behind the suggested measures. It should be observed that the signature of the relevant Officer does not appear on either the disputed order or the show cause notice.
The ruling cannot be upheld since it is unsigned, according to the bench, which cited the case Railsys Engineers Private Limited & Anr. v. The Additional Commissioner of Central Goods and Services Tax (Appeals-II) & Anr.
The panel further noted that an unsigned notice or order cannot be taken into account as an order, contrary to what the Bombay High Court ruled in Ramani Suchit Malushte v. Union of India and Ors.
The Court chose to give the petitioner two weeks from the date of the ruling to reply to the show cause notices. Also instructed to give each person another opportunity to be heard.
| Case Title | Marg ERP Limited Through Its Auth vs Commissioner of Delhi Goods And Service Tax |
| Citation | W.P.(C) 872/2023 |
| Date | 03.02.2023 |
| Appellant by | Mr. A.K. Babbar & Mr. B.K. Tripathi |
| Respondent by | Mr Rajeev Aggarwal, ASC, GNCTD with Ms Divyanshi Bansal |
| Delhi High Court | Read Order |
