Tax Authority's Show Cause Notice Invalidated After Failing to Properly Evaluate Petitioner's Comprehensive Response and Procedural Fairness

HC found the tax authority's order disposing Show Cause Notice invalid due to failure to properly consider petitioner's detailed reply. The court set aside the order, remanded the matter for re-adjudication, and directed the Proper Officer to provide personal hearing and issue a fresh order within statutory timelines. All substantive rights of parties were preserved.

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Issues involved: Impugning order disposing Show Cause Notice u/s 73 of CGST Act, 2017 without considering petitioner's reply.

Summary:
The petitioner challenged an order dated 30.12.2023, which disposed of the Show Cause Notice dated 24.09.2023, proposing a demand of Rs. 88,34,701.00 against the petitioner under Section 73 of the Central Goods and Services Tax Act, 2017. The petitioner contended that their detailed reply dated 17.10.2023 was not considered, and the impugned order was cryptic. The Show Cause Notice had various headings, and a detailed reply was provided by the petitioner under each head. However, the impugned order stated the reply was unsatisfactory without proper consideration of the submitted documents. The court held that the Proper Officer did not apply his mind to the reply and did not seek further details from the petitioner if needed. Consequently, the impugned order was set aside, and the matter was remitted to the Proper Officer for re-adjudication. The petitioner was directed to file a reply within 30 days, and the Proper Officer was instructed to pass a fresh order after giving a personal hearing 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, and all rights of the parties were reserved. The challenge to Notification No. 9 of 2023 regarding the initial time extension was left open, and the petition was disposed of accordingly.

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