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Case Summary: Kalpatru Projects International Limited (Earlier Known
as JMC Projects (India) Limited) vs. Goods and Service Tax Officer (GSTO) Ward
49, 52 and 53 & Anr.
Case Number: W.P.(C)
5728/2024
Date of Order: April
24, 2024
Court Name: High
Court of Delhi, New Delhi
Summary of Case: The
petitioner, Kalpatru Projects International Limited, challenged an order issued
by the GSTO demanding a substantial amount of tax and penalty. The petitioner
contended that their detailed response to the show cause notice was not
considered adequately by the GSTO, leading to a summary dismissal of their
arguments and an ex-parte demand.
Facts of the Case:
·
Show Cause Notice: Issued on September 24,
2023, proposing a demand of Rs. 7,86,84,337.00 against the petitioner.
·
Petitioner's Reply: Submitted on November
7, 2023, detailing responses to each head of the notice, including
under-declaration of output tax and excess claim of Input Tax Credit (ITC).
·
Impugned Order: Issued on December 28,
2023, by the GSTO, dismissing the petitioner's reply as unsatisfactory without
detailed consideration.
Submissions By Petitioner:
·
Argued that their detailed reply and
supporting documents were not considered by the Proper Officer.
·
Contended that the impugned order was
cryptic and lacked proper reasoning.
Respondent:
·
The GSTO claimed that the petitioner's
response was found unsatisfactory.
·
Justified the ex-parte order due to lack
of further explanations from the petitioner.
Findings and Judgment:
·
The court found that the Proper Officer
did not apply his mind to the petitioner's detailed reply.
·
The order dated December 28, 2023, was set
aside due to inadequate consideration of the petitioner's response.
·
The matter was remitted back to the Proper
Officer for re-adjudication with specific instructions to consider the
petitioner's reply and provide a reasoned order.
·
The court instructed the petitioner to
file a new reply within 30 days and directed the Proper Officer to complete the
re-adjudication process in accordance with the law.
Conclusion: The
High Court of Delhi emphasized the necessity for a proper and detailed
examination of replies submitted by taxpayers before passing an order. The case
was remitted back for a fresh decision, ensuring procedural fairness and
adherence to the principles of natural justice.
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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