2024 (8) TMI 581 - HC - GST

Violation of principles of natural justice - non-reasoned order - rejection of ITC claim - HELD THAT - In the notice issued to the petitioner, neither the date for personal hearing was fixed nor any reason has been assigned for initiating the proceedings under Section 73 of the SGST Act, and the impugned order has been passed by the assessing authority i.e. respondent no.3 without assigning any reason. Further, in the appeal, new facts were brought to which the petitioner was never put to notice, learned Standing Counsel could not dispute the said fact that for the first time, the new facts have been mentioned in the impugned order to which the petitioner has not been given any opportunity to rebut the same. The impugned orders cannot sustain in the eyes of law and the same are hereby quashed - matter is remanded to the respondent no.3 to pass a fresh reasoned and speaking order - petition allowed by way of remand.

Summary

The High Court of Allahabad quashed the orders rejecting the Input Tax Credit claim of the petitioner due to lack of proper notice and reasoning. The court remanded the matter to the assessing authority for a fresh order within two months after hearing all stakeholders. Any amount deposited by the petitioner shall be subject to the outcome of the new order. The writ petition was allowed.