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M/s. Swastik Enterprises vs. Union of India and Others
Case No.: W.P.(C)
5938/2024
Order Date: 29
April 2024
Court: High
Court of Delhi
Summary:
The petitioner challenged the demand order issued under Section 73 of the CGST
Act, arguing that the order was passed without proper communication of the show
cause notice (SCN) and thus without providing an opportunity to be heard.
Case Facts:
·
The SCN dated 28.09.2023 proposed a demand
of ₹10,85,557.20 against the petitioner.
·
The petitioner had closed his business in
2020 and did not check the GST portal.
·
The SCN was uploaded only on the portal
and not communicated through any other means, rendering the petitioner unaware
of the proceedings.
·
The impugned order dated 21.12.2023
created the demand ex-parte due to the petitioner's non-response.
Petitioner's Submissions:
·
Contended that the SCN was not
communicated properly, and the petitioner was unaware of the proceedings.
·
Argued that the non-response was due to
not accessing the portal after business closure.
Respondent's Submissions:
· Did
not contest the factual scenario presented by the petitioner.
Court Findings and
Judgment:
· The
court found that the SCN was not communicated through appropriate channels,
depriving the petitioner of an opportunity to respond.
· Recognized
the need to provide a fair opportunity to the petitioner to respond to the SCN.
Judgment:
·
Set aside the impugned order dated
21.12.2023 and restored the SCN for re-adjudication.
·
Directed the petitioner to file a further
reply to the SCN within two weeks.
·
Directed the Proper Officer to
re-adjudicate the SCN after giving a personal hearing and to pass a fresh
speaking order within the prescribed period.
Conclusion: The petition
was disposed of, emphasizing the necessity for proper communication of show
cause notices and adherence to due process to ensure fairness.
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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