Case Summary: M/S Trendz vs. Sales Tax Officer Class II/AVATO, Ward 54 & Ors.
Case Number: W.P.(C) 6831/2024
Date of Order: May 21, 2024
Court Name: High Court of Delhi, New Delhi
Summary of the Case: The petitioner, M/S Trendz, challenged the demand order issued by the Sales Tax Officer, which was based on an ex-parte decision due to the petitioner's failure to respond to a show cause notice. The court set aside the demand order, granting the petitioner an opportunity to respond to the notice.
Facts of the Case:
· The petitioner received a show cause notice dated September 29, 2023, proposing a demand of Rs. 3,38,402.00.
· The petitioner did not file a reply as the business had been transferred to another entity and the GST registration was canceled as of August 31, 2021.
· The show cause notice raised issues related to under-declaration of output tax, excess claim of ITC, and scrutiny of ITC availed.
· The impugned order was passed ex-parte, stating that the petitioner did not respond despite reminders and opportunities for a personal hearing.
Submission by Petitioner:
· The petitioner argued that they could not access the GST portal due to the cancellation of their GST registration.
· They requested an opportunity to respond to the show cause notice.
Submission by Respondent:
· The respondent contended that the demand order was issued because the petitioner failed to respond to the show cause notice and reminders.
Findings by Court:
· The court found that the petitioner was not given a fair opportunity to respond due to the cancellation of their GST registration.
· It concluded that one more opportunity should be granted to the petitioner to file a reply and present their case.
Conclusion:
The court set aside the demand order dated December 28, 2023, and remitted the show cause notice to the Proper Officer for re-adjudication. The petitioner was given 30 days to file a reply, after which the Proper Officer was directed to conduct a fresh hearing and issue a new order. The court did not comment on the merits of the case, preserving all rights and contentions of both parties.
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.
