2025 (3) TMI 1469 - HC - GST

Tax Demand Invalidated: GST Officer's Order Quashed for Insufficient Reasoning and Failure to Address Taxpayer's Response

Syndicate Bank Versus Department Of Trade And Taxes

Delhi HC quashed GST officer's order for lack of reasoning in tax demand case. Court found the order deficient in addressing taxpayer's response to Show ... Conclusion of proceedings referable to Section 73 of Central Goods and Services Tax Act, 2017 - under-declaration of output tax and ineligible Input Tax Credit (ITC) - HELD THAT:- The authority has failed to assign or accord any reasoning or even allude to the response which had been submitted pursuant to the Show Cause Notice [SCN] which was issued. In view of the above, it is opined that the said order, being unreasoned, would not sustain. The impugned order dated 20 August 2024 is quashed - petition allowed. In the case before the Delhi High Court, the petitioner challenged an order dated 20 August 2024 issued by the GST Officer under Section 73 of the Central Goods and Services Tax Act, 2017. The GST Officer had determined demands for under-declaration of output tax and ineligible Input Tax Credit (ITC), with specific amounts cited for CGST and SGST, along with interest and penalties. The Court noted that the GST Officer's order lacked reasoning and failed to address the taxpayer's response to the Show Cause Notice (SCN). Consequently, the Court found the order to be unsustainable. Counsel for the respondent suggested remanding the matter for fresh consideration. The Court agreed, quashed the impugned order, and directed the GST Officer to re-examine and conclude the SCN proceedings in accordance with the law.