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2024 (5) TMI 256 - HC - GSTImposition of GST on vouchers - Validity of assessment order - unreasoned impugned order - violation of principles of natural justice - HELD THAT - The respondent summarized the contentions of the petitioner. After doing so, the sweeping conclusion that the argument was not valid is recorded. The respondent also records that vouchers are in the nature of actionable claims, which are included within the definition of goods under Section 2(52) of the CGST Act. Conspicuous by its absence in the impugned order, is the recording of reasons as to why the contentions of the petitioner were rejected. Since the impugned order is unreasoned in this respect, such order is unsustainable. The impugned order is set aside only insofar as it relates to the imposition of GST on vouchers. As a consequence, this issue is remanded for re-consideration by the respondent. After providing a reasonable opportunity to the petitioner, including a personal hearing, the respondent is directed to issue a fresh speaking order after duly taking note of and dealing with each contention raised by the petitioner in this regard. Petition disposed off by way of remand.
Issues involved: Challenge to assessment order imposing GST on vouchers.
Summary: The petitioner, engaged in managing reward programs, challenged an assessment order imposing GST on vouchers. The petitioner contended that as an intermediary procuring and selling vouchers, it is not a supplier of goods underlying the vouchers. The petitioner relied on the definition of vouchers u/s 2(118) of the CGST Act and the time of supply in relation to vouchers u/s 12(4). The petitioner argued that the case is similar to a Karnataka High Court judgment and a recent Madras High Court judgment. The impugned order lacked reasoning for conclusions, according to the petitioner. The respondent summarized the petitioner's contentions but concluded that vouchers are actionable claims subject to GST. The High Court found the impugned order unsustainable due to lack of reasoning and set it aside only regarding the imposition of GST on vouchers. The issue was remanded for re-consideration by the respondent, directing a fresh speaking order within two months, duly addressing the petitioner's contentions. The petition was disposed of accordingly, with no costs incurred.
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