Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Tax Liability Challenge Succeeds: Procedural Fairness Mandates Fresh Order with Proper Hearing on Input Tax Credit Claims HC allowed the petition challenging tax liability, setting aside the impugned order due to lack of hearing opportunity. The court directed the tax ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax Liability Challenge Succeeds: Procedural Fairness Mandates Fresh Order with Proper Hearing on Input Tax Credit Claims
HC allowed the petition challenging tax liability, setting aside the impugned order due to lack of hearing opportunity. The court directed the tax department to issue a fresh order after providing the petitioner a proper hearing on the show cause notice regarding inadmissible Input Tax Credit claims.
Issues involved: Quashing of show cause notice in Form GST DRC-01 and tax liability imposition due to inadmissible ITC claimed from bogus firms.
Summary: The petitioner filed a petition seeking the quashing of a show cause notice and an impugned order imposing tax liability on the petitioner firm for claiming inadmissible Input Tax Credit (ITC) from bogus firms. The petitioner's grievance was that a previous show cause notice had already been issued for the same transaction and period. However, a fresh show cause notice was issued without providing an opportunity for a personal hearing, resulting in the confirmation of tax liability, interest, and penalty under Section 74 (11) of the CGST/SGST Act, 2017. The petitioner argued that two show cause notices on the same cause of action should be set aside, and no hearing opportunity was given before passing the impugned order.
Upon hearing both parties, it was acknowledged that no opportunity for hearing was provided to the petitioner before the impugned order was passed. Consequently, the Court allowed the petition, setting aside the impugned order dated 25.01.2023, and granted liberty to the respondent-department to issue a fresh order after affording the petitioner an opportunity for a hearing and serving the show cause notice dated 23.11.2022.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
of 
TaxTMI 
