Case Name: Sethia Enterprises vs. Commissioner Delhi Goods and Service Tax and Others
Case Number: W.P.(C) 7730/2024 & CM APPLs. 32093-94/2024
Date of Order: 27 May 2024
Court: High Court of Delhi
Facts of the Case:
· The petitioner, Sethia Enterprises, challenged an order dated 24 April 2024, which confirmed a demand of Rs. 12,42,094/- along with a penalty.
· The order was issued under Section 73 of the Central Goods and Services Tax Act, 2017, based on a Show Cause Notice dated 12 December 2023.
· The grounds for the notice included non-reconciliation of turnovers, excess claim of Input Tax Credit (ITC), and discrepancies between GSTR-1 and GSTR-3B.
Submissions by Petitioner:
· The petitioner argued that a detailed reply with supporting documents was submitted on 12 January 2024.
· The petitioner claimed the order did not consider the detailed reply and was passed without due application of mind.
Submissions by Respondents:
· The respondents maintained that the petitioner's reply was unsatisfactory and lacked sufficient supporting documents, such as invoices and proof of payment.
Findings and Decision:
· The court observed that the impugned order failed to consider the petitioner's detailed reply and supporting documents.
· The court noted that the Proper Officer should have requested any further required details from the petitioner.
· The court set aside the order dated 24 April 2024 and remitted the Show Cause Notice for re-adjudication.
· The petitioner was allowed to file a further reply within 30 days, and the Proper Officer was instructed to re-adjudicate the matter, providing an opportunity for a personal hearing and passing a fresh speaking order in accordance with the law.
Summary and Conclusions:
· The case highlighted procedural lapses in the handling of the petitioner's reply by the tax authorities.
· The court emphasized the importance of considering detailed replies and supporting documents before passing an order.
· The matter was remanded for fresh adjudication, ensuring the petitioner's right to a fair hearing and proper consideration of their submissions.
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.
