Case Summary: Future Generali India Insurance Company Limited vs. Goods and Service Tax Officer (GSTO) Ward 203 & Ors.
Case Number: W.P.(C) 7747/2024 & CM APPLs. 32139-40/2024
Date of Order: 27 May 2024
Court Name: High Court of Delhi, New Delhi
Summary of Case: The petitioner challenged an Order-in-Original dated 29 April 2024, which stemmed from a Show Cause Notice (SCN) issued on 24 December 2023. The SCN demanded a sum of ₹7,02,71,577 for the financial year 2018-19. The petitioner contended that the SCN and subsequent order did not consider their detailed replies and that the demand was unjustified as it was based on a Special Audit Report without independent application of mind by the GSTO.
Facts of the Case:
· Show Cause Notice: Issued on 24 December 2023, proposing a demand of ₹7,02,71,577.
· Petitioner’s Response: Detailed replies dated 17 January 2024 and 27 February 2024, which were allegedly not considered by the GSTO.
· Order-in-Original: Issued on 29 April 2024, confirming the demand and penalty based on findings of a Special Audit.
Submissions by Petitioner:
· Argued that the SCN and order were cryptic and did not consider their detailed replies.
· Claimed that the SCN was issued mechanically, relying solely on the Special Audit Report.
Submissions by Respondents:
· Represented by Mr. Rajeev Aggarwal and team, who accepted the notice but did not provide substantial counter-arguments in the document.
Court's Findings:
· The SCN relied entirely on the Special Audit Report without additional reasoning.
· The petitioner provided comprehensive replies which the GSTO failed to consider adequately.
· The GSTO's assertion that the petitioner did not "properly reply/file" was unsupported by detailed reasoning.
Conclusion
The High Court set aside the Order-in-Original dated 29 April 2024 and remitted the SCN to the GSTO for re-adjudication. The petitioner was granted 30 days to file an additional reply, after which the GSTO was instructed to provide a personal hearing and pass a fresh speaking order within the prescribed period under Section 75(3) of the CGST Act, 2017. The court did not comment on the merits of the contentions of either party.
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.
