GST | Case Laws: Where impugned order recorded no proper reply/explanation had been received from tax-payer despite sufficient and repeated opportunities, assessee had submitted detailed point-wise reply to show cause notice, proper officer had not even looked at reply submitted by assessee, impugned order was to be set aside
[2024] 160 taxmann.com 535 (Delhi)
HIGH COURT OF DELHI
Samsung India Electronics (P.) Ltd.
v.
Union of India
SANJEEV SACHDEVA AND RAVINDER DUDEJA, JJ.
W.P.(C) NO. 2553 OF 2024
CM APPL. NO. 10466-68 OF 2024
FEBRUARY 21, 2024
Determination of tax – Consideration of reply submitted by assessee – Natural justice – Assessee impugned order whereby proceedings under section 73 of CGST Act had been concluded and a demand had been created – Assessee submitted that show cause notice was received by assessee to which a detailed point-wise reply was submitted – However, impugned order recorded that no proper reply/explanation had been received from tax-payer despite sufficient and repeated opportunities – HELD : Observation in impugned order was not sustainable for reasons that reply filed by assessee was a detailed reply – Proper officer had to at least consider reply on merits and then form an opinion whether explanation was sufficient or not – He merely held that no proper reply/explanation had been received which showed that proper officer had not even looked at reply submitted by assessee – Accordingly, impugned order was to be set aside [Section 73 of Central Goods and Services Tax Act, 2017/Delhi Goods and Services Tax Act, 2017][Paras 6 to 8][In favour of assessee/Matter remanded]
The High Court’s judgment underscores a fundamental principle of administrative justice: decisions must be made based on a comprehensive consideration of all relevant materials, including detailed replies from taxpayers. In declaring the order under section 73 as not sustainable, the court highlights the importance of due process and the duty of authorities to thoroughly evaluate the evidence before them. This decision serves as a reminder that procedural fairness is paramount in tax adjudication, ensuring that taxpayers are given a fair opportunity to present their case. Such judgments reinforce the accountability of tax authorities and protect the rights of taxpayers, ensuring that administrative actions are grounded in fairness and careful analysis – JSPCO
