An Order Approved without Providing an Opportunity for Clarification on SCN U/S 73: Delhi HC Instructs Re-Adjudication

Delhi High Court in a case asked for re-adjudication when the order passed u/s 73 of the Central Goods and Services Tax Act, 2017 without furnishing a chance to clarify the response concerning the Show Cause Notice (SCN).

The applicant Decolene Fibers Pvt. Ltd. filed the writ petition against the show cause notice and order passed u/s 73 of the Central Goods and Services Tax Act by offering a demand of Rs 88,34,701.00.

During the adjudication applicant counsel Vineet Bhatia furnished that the applicant had furnished a detailed response on 17.10.2023, but, the impugned order on 30.12.2023 does not regard the reply proposed by the applicant and is a cryptic order.

Read Also: Delhi High Court Directs Officials for GST Refund to Petitioner Paid Under Pressure

The bench while deciding the case noted that the Impugned order on 30.12.2023 issued on SCN on 24.09.2023, after recording the narration records that the response uploaded through the assessee is insufficient.

It additionally noted that the proper officer had provided no chance for the Petitioner to clarify its response or provide additional documents/details.

A division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja post examining the facts and arguments of both parties, set aside the order passed u/s 73 of the Central Goods and Services Tax Act and directed re-adjudication without furnishing a chance for clarifying the reply concerning the Show Cause Notice.

Case TitleDecolene Fibers Pvt. Ltd. VS Commissioner DGST and ORS.
Case No.:- W.P.(C) 5429/2024
Date16.04.2024
Counsel For PetitionerMr. Vineet Bhatia, Advocate
Counsel For RespondentMr Rajeev Aggarwal, ASC with Ms Shaguftha
H. Badhwar, Mr. Prateek Badhwar & Ms.
Samridhi Vats, Advocates
Delhi High CourtRead Order
Arpit Kulshrestha

Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous.

Recent Posts

No GST Returns Will Be Accepted If Filed More Than 3 Years Past Their Due Date

An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…

18 hours ago

Delhi HC: Two Judgment Orders Against One SCN Cannot Be Accepted for the Same Period

It was cited by the Delhi HC that the two adjudication orders against one SCN…

20 hours ago

CBDT Allows Electronic Filing of Forms 3CEDA and 3C-O Via Notification No. 5/2024

The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…

21 hours ago

October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…

23 hours ago

UP AAR: GST Will Be Levied on the Installation of Electricity Distribution Systems by DISCOMs

Goods and Services Tax (GST) is to get paid on the procurement of materials and…

2 days ago

Bombay HC Quashes Rejection Order for Voluntary GST Cancellation Due to Lack of Stated Reasons

The Bombay High Court carried that as the revocation orders for the registration cancellation on…

3 days ago