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M/s Jindal Trading Co. vs. Union of India and Others
Application No.
W.P.(C)
5966/2024 & CM APPL. 24768/2024
Court: High
Court of Delhi
Date of Order: 27
May 2024
Brief Facts of the Case:
The petitioner, M/s
Jindal Trading Co., challenged the orders dated 24.12.2023 and 28.12.2023,
which disposed of the Show Cause Notices (SCNs) dated 22.09.2023 and
29.09.2023. These SCNs proposed demands of Rs. 5,35,393.00 and Rs.
1,89,65,230.00, respectively, including penalties under Section 73 of the
Central Goods and Services Tax Act, 2017. The petitioner argued that they were
unable to file a reply to the SCN dated 22.09.2023 and that their detailed
reply to the SCN dated 29.09.2023 was not properly considered.
Submission by Petitioner:
1. The petitioner was
unable to respond to the SCN dated 22.09.2023 due to its vague and unreasoned
nature.
2. A detailed reply was
submitted for the SCN dated 29.09.2023, but the impugned order did not consider
the reply and was thus cryptic and dismissive.
3. The petitioner had
provided detailed documentation, including invoices and bank statements, in
response to the SCN dated 29.09.2023.
Submission by Respondent:
The respondents argued
that the petitioner did not submit proper calculations or reconciliation for
the ITC claims and availed credit from non-functional or fraudulent dealers,
leading to the demand creation.
Findings and Decision:
The court observed that:
1. The SCN dated
22.09.2023 was vague and lacked detailed reasoning.
2. The petitioner's
detailed reply to the SCN dated 29.09.2023 was not properly considered by the
proper officer.
3. The proper officer
failed to seek further clarifications or details from the petitioner if
required.
The court decided to set
aside the impugned orders dated 24.12.2023 and 28.12.2023, remitting the SCNs
to the proper officer for re-adjudication. The petitioner was granted an
additional opportunity to respond to the SCNs within 30 days.
Conclusion:
The court did not comment
on the merits of the case but directed the proper officer to re-adjudicate the
SCNs after considering the petitioner's responses and providing a personal
hearing. A fresh speaking order must be issued in accordance with the law within
the prescribed period under Section 75(3) of the Act.
Disclaimer: All the
Information is based on the notification, circular and order issued by the
Govt. authority and judgement delivered by the court or the
authority information is strictly for educational purposes and on the
basis of our best understanding of laws & not binding on anyone.
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