2023 (10) TMI 945 - HC - GST

GST Assessment Under Section 73 Invalidated Due to Lack of Proper Hearing and Insufficient Reasoning in Appellate Order

Mittal Agro Private Ltd. Thru. Its Director Shri Sukkhu Lal Chandwani Versus Commissioner, Commercial Tax, U.P. Lko. And 2 Others

HC quashed the appellate order challenging GST assessment under Section 73, which imposed penalties without considering submitted evidence. The court ... Claiming ITC without authorization - allegation founded on the basis that the firm, based on whose supplies the ITC was availed, was not in existence - HELD THAT:- On perusal of the records, it is clearly revealed that along with the memo of appeal, the petitioner had filed the documents to demonstrate that the transactions based upon which the ITC was claimed, were through the banking channels and the documents were duly uploaded on the GST portal. None of the said aspect has been considered in the appellate order, which is impugned in the present writ petition. It is settled that a non speaking order is violative of Article 14 of the Constitution of India, thus, on the limited ground of not considering any material whatsoever and the order being a non-speaking order, the order dated 04.07.2023 is quashed. The matter is remanded back to the appellate authority to pass an order on the appeal of the petitioner after giving opportunity of hearing and considering the material on record, in accordance with law - Petition disposed off by way of remand. Issues involved:The judgment deals with a challenge to an order passed under Section 73 of the GST Act, 2017, and the subsequent dismissal of an appeal by the appellate authority.Challenge to Order under Section 73 of GST Act:The petitioner, a firm registered under the GST Act, was served with a show cause notice alleging unauthorized claim of Input Tax Credit (ITC) based on supplies from a non-existent firm. Despite the petitioner's detailed reply and submission of documents showing transactions through banking channels, an order was passed assessing ITC to be paid along with a penalty of Rs. 26,95,757.40. The petitioner's appeal against this order was dismissed without considering the material submitted, leading to the filing of the writ petition.Dismissal of Appeal by Appellate Authority:The appellate order, which upheld the assessment order against the petitioner, was passed without the appearance of the department's representative or the petitioner. The appellate authority failed to consider the documents demonstrating transactions through banking channels, leading to the writ petition challenging the non-speaking order on the grounds of violation of Article 14 of the Constitution of India.Court's Decision:The High Court quashed the appellate order dated 04.07.2023 for not considering any material and being a non-speaking order. The matter was remanded back to the appellate authority to pass an order after giving an opportunity of hearing and considering the material on record in accordance with the law. The writ petition was disposed of accordingly.