2024 (5) TMI 1037 - HC - GST

Ex-Parte CGST Order Invalidated Due to Procedural Defect in Show Cause Notice, Directing Fresh Hearing and Reply

M/s Shree Padma Industries Versus Union of India & Ors.

M/s Shree Padma Industries Versus Union of India & Ors. - 2024 (87) G.S.T.L. 480 (Del.) Issues involved: Impugned order u/s 73 of CGST Act, 2017; Lack of response to Show Cause Notice; Request for Annexure-B; Ex-parte decision; Opportunity for reply and personal hearing; Setting aside impugned order; Remittal for re-adjudication; Timeframe for response and fresh order; Challenge to Notification No. 9 of 2023.Impugned Order u/s 73 of CGST Act, 2017: The petitioner challenged an order dated 12.12.2023 passed u/s 73 of the Central Goods and Services Tax Act, 2017, raising a demand of Rs. 9,04,200.00 against the petitioner based on a Show Cause Notice dated 29.09.2023.Lack of Response to Show Cause Notice: The petitioner claimed that the Show Cause Notice mentioned an Annexure-B, which was not provided despite requests. The impugned order was passed ex-parte due to the petitioner's failure to file a reply or appear for a personal hearing, as per Section 75(4) of the DGST Act.Request for Annexure-B: The petitioner requested the Proper Officer for a copy of Annexure-B to enable a reply, but it was not supplied. The Respondents later stated that there was no separate Annexure-B and that all details were contained in the Show Cause Notice itself.Ex-parte Decision and Opportunity for Reply: The impugned order was based on the petitioner's non-response to the Show Cause Notice. The Court found that since the Respondents confirmed there was no Annexure-B, the petitioner should be granted one opportunity to respond to the Notice.Setting Aside Impugned Order and Remittal for Re-adjudication: The Court set aside the impugned order dated 12.12.2023 and remitted the Show Cause Notice to the Proper Officer for re-adjudication. The petitioner was directed to file a further reply within two weeks for a fresh speaking order.Timeframe for Response and Fresh Order: The Proper Officer was instructed to re-adjudicate the Show Cause Notice after giving the petitioner a personal hearing and to pass a fresh order within the prescribed period under Section 75(3) of the Act.Challenge to Notification No. 9 of 2023: The Court left open the challenge to Notification No. 9 of 2023 regarding the initial extension of time.Conclusion: The petition was disposed of with the above terms, clarifying that the Court did not consider the merits of the parties' contentions, reserving all rights and contentions for future proceedings.