Tax Officer's Order Invalidated: Procedural Defect in Show Cause Notice Leads to Remand for Fresh Adjudication Under Section 73 HC found the tax officer's order improperly considered the taxpayer's reply to a show cause notice under Section 73 of CGST Act. The court set aside the ...
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Tax Officer's Order Invalidated: Procedural Defect in Show Cause Notice Leads to Remand for Fresh Adjudication Under Section 73
HC found the tax officer's order improperly considered the taxpayer's reply to a show cause notice under Section 73 of CGST Act. The court set aside the order, remitting the matter back to the proper officer for re-adjudication. The taxpayer was directed to file a detailed reply within 30 days, and the officer must conduct a fresh hearing and pass a reasoned order, preserving all legal rights and contentions.
Issues involved: Stay of impugned order, disposal of Show Cause Notice u/s 73 of CGST Act, 2017, consideration of reply by Proper Officer.
Stay of Impugned Order: The petitioner sought a stay of the impugned order dated 30.12.2023 but expressed willingness for remittance of the matter for reconsideration of the Show Cause Notice without prejudice to rights and contentions.
Disposal of Show Cause Notice u/s 73 of CGST Act, 2017: The impugned order dated 30.12.2023 disposed of the Show Cause Notice dated 25.09.2023, proposing a demand of Rs. 1,58,54,742.00 against the Petitioner under Section 73 of the Central Goods and Services Tax Act, 2017. The petitioner had filed a detailed reply dated 25.10.2023, but the impugned order did not consider it adequately, deeming it incomplete and unsatisfactory.
Consideration of Reply by Proper Officer: The Proper Officer opined that the petitioner's reply was incomplete, unsupported by adequate documents, unclear, and unsatisfactory. However, the Court found the Officer did not properly consider the detailed reply submitted by the petitioner. The Court held that the Officer did not apply his mind to the reply, and no opportunity was given to the petitioner to clarify or provide further details. Consequently, the impugned order dated 30.12.2023 was set aside, and the matter was remitted to the Proper Officer for re-adjudication.
Final Disposal: The petitioner was directed to file a reply to the Show Cause Notice within 30 days, following which the Proper Officer would re-adjudicate the matter after a personal hearing and pass a fresh speaking order within the prescribed period under Section 75(3) of the Act. The Court clarified that it did not comment on the merits of the contentions of either party, and all rights and contentions were reserved. The challenge to Notification No. 9 of 2023 regarding the initial extension of time was left open, and the petition was disposed of accordingly.
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