GST Demand Order Overturned: Improper Consideration of Evidence Leads to Remand for Fresh Adjudication HC set aside a GST demand order u/s 73 due to improper consideration of petitioner's detailed replies. The court found the Proper Officer failed to ...
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GST Demand Order Overturned: Improper Consideration of Evidence Leads to Remand for Fresh Adjudication
HC set aside a GST demand order u/s 73 due to improper consideration of petitioner's detailed replies. The court found the Proper Officer failed to adequately review submitted documents and did not seek clarifications. Order was remitted for re-adjudication, with petitioner granted 30 days to file a further reply and the Proper Officer directed to pass a fresh speaking order within prescribed period.
Issues involved: Impugning an order u/s 73 of the Central Goods and Services Tax Act, 2017 for demand and penalty.
Details of the Judgment:
1. The petitioner challenged an order dated 30.12.2023 regarding a Show Cause Notice proposing a demand of Rs 2,40,37,812. The order was passed u/s 73 of the Act.
2. The Court accepted the notice, and with the parties' consent, proceeded for final disposal on the same day.
3. The petitioner contended that detailed replies were submitted on 25.10.2023, 02.11.2023, and 14.11.2023, but the impugned order did not consider them adequately.
4. The Show Cause Notice outlined reasons under different headings, to which the petitioner responded with detailed replies and supporting documents.
5. The impugned order found the petitioner's reply incomplete, lacking adequate support, and unable to clarify the issues raised in the Notice. The Proper Officer deemed the reply unsatisfactory.
6. The Court held that the Proper Officer did not properly consider the detailed replies with supporting documents submitted by the petitioner, indicating a lack of application of mind.
7. It was noted that if further details were needed, the Proper Officer should have specifically requested them from the petitioner, which was not done.
8. Consequently, the impugned order was set aside, and the Show Cause Notice was remitted to the Proper Officer for re-adjudication.
9. The petitioner was granted 30 days to file a further reply to the Show Cause Notice, after which the Proper Officer was directed to re-adjudicate the matter and pass a fresh speaking order within the prescribed period.
10. The Court clarified that it did not consider or comment on the merits of the parties' contentions, reserving all rights and contentions.
11. The petition was disposed of in the above terms.
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