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2024 (6) TMI 118 - HC - GSTViolation of principles of natural justice - impugned order does not take into consideration the reply submitted by the Petitioner and is a cryptic order - order u/s 73 of the Central Goods and Services Tax Act, 2017 - HELD THAT - The observation in the impugned order dated 29.04.2024 is not sustainable for the reasons that the reply dated 15.12.2023 filed by the Petitioner is a detailed reply with supporting documents. Proper Officer had to at least consider the reply on merits and then form an opinion. He merely held that that the tax payer has submitted incomplete supporting documents on the GST Portal in support of availing the benefit of cancelled dealer which ex-facie shows that the Proper Officer has not applied his mind to the reply submitted by the petitioner. Further, if the Proper Officer was of the view that any further details were required, the same could have been specifically sought from the Petitioner. However, the record does not reflect that any such opportunity was given to the Petitioner to clarify its reply or furnish further documents/details. The impugned order dated 29.04.2024 cannot be sustained and is set aside. The Show Cause Notice is remitted to the Proper Officer for re-adjudication - Petition disposed off by way of remand.
Issues involved: Impugning an order u/s 73 of the Central Goods and Services Tax Act, 2017 for creating a demand against the petitioner.
The petitioner challenged an order dated 29.04.2024, which disposed of a Show Cause Notice proposing a demand of Rs. 3,11,54,338.00 against the petitioner u/s 73 of the Act. The petitioner contended that the order did not consider the detailed replies submitted earlier and was cryptic in nature. The Show Cause Notice raised grounds under separate headings regarding excess claim of Input Tax Credit (ITC) including scrutiny of ITC availed, ITC claimed from cancelled dealers, return defaulters & tax non-payers. The petitioner had provided a detailed reply with supporting documents to each of these heads. The impugned order, however, concluded that incomplete supporting documents were submitted on the GST Portal in support of availing the benefit of a cancelled dealer. The court found this conclusion unsustainable as the petitioner's reply was detailed and supported by documents, indicating that the Proper Officer did not properly consider the response. The court noted that the Proper Officer did not seek further details from the petitioner if needed, and therefore, set aside the impugned order dated 29.04.2024. The Show Cause Notice was remitted to the Proper Officer for re-adjudication. The petitioner was granted 30 days to file a further reply to the Show Cause Notice, after which the Proper Officer was directed to re-adjudicate the matter, provide an opportunity for a personal hearing, and pass a fresh speaking order in accordance with the law within the prescribed period u/s 75(3) of the Act. The court clarified that it did not comment on the merits of the contentions of either party, and all rights and contentions of the parties were reserved.
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