HC Quashes GST Demand Order, Directs Proper Officer to Reconsider Case with Fair Procedural Opportunity and Statutory Compliance

HC set aside a GST demand order of Rs. 3,05,43,710 against a petitioner due to improper consideration of their reply. The court directed the Proper Officer to seek additional details, provide an opportunity for personal hearing, and re-adjudicate the show cause notice within prescribed statutory timelines, without commenting on the substantive merits of the case.

---

---

Issues:
The judgment involves the impugning of an order dated 28.12.2023 under Section 73 of the Central Goods and Services Tax Act, 2017, where a demand of Rs. 3,05,43,710.00 was raised against the Petitioner.

Details of the Judgment:

Issue 1: Consideration of Petitioner's Reply
The Petitioner had submitted a detailed reply dated 06.12.2023 to the Show Cause Notice, but the impugned order did not take it into consideration, deeming it incomplete and unsupported by relevant documents. The court found that the Proper Officer did not properly consider the reply and did not give the Petitioner an opportunity to clarify or provide further details.

Issue 2: Sustenance of the Order
The court held that the observation in the impugned order was not sustainable as the reply by the Petitioner was detailed, and the Proper Officer did not apply his mind to it. The court emphasized that if further details were needed, the Petitioner should have been asked, but no such opportunity was given. Therefore, the order was set aside and remitted to the Proper Officer for re-adjudication.

Issue 3: Re-adjudication Process
The court directed the Proper Officer to inform the Petitioner of any additional details or documents required. Once the Petitioner provides the necessary explanation and documents, the Proper Officer must re-adjudicate the Show Cause Notice, allowing a personal hearing and issuing a fresh speaking order within the prescribed period under Section 75(3) of the Act.

Conclusion:
The court clarified that it did not comment on the merits of the parties' contentions and reserved all rights and contentions. The challenge to Notification No. 9 of 2023 regarding the initial extension of time was left open, and the petition was disposed of accordingly.

---