2024 (12) TMI 333 - HC - GST

Challenge to order related to tax period of July 2018 to March 2019 under Section 73 of the Central Goods and Services Tax Act, 2017 - HELD THAT - As is ex facie apparent, the order impugned is wholly unreasoned and fails to engage with or deal with the various objections which had been urged by the petitioner in respect of the audit findings as well as the proposed additions. The impugned order quashed - petition allowed.

Summary

Issues:
Challenging order dated 26 April 2024 related to tax period of July 2018 to March 2019 under Section 73 of the Central Goods and Services Tax Act, 2017.

Analysis:
The petition was filed to challenge the order dated 26 April 2024 regarding the tax period from July 2018 to March 2019 under Section 73 of the Central Goods and Services Tax Act, 2017. The respondents had conducted a special audit of the petitioner's affairs, to which the petitioner responded by raising objections and denying additional tax demands. A Show Cause Notice (SCN) was issued on 20 January 2024, alleging incompleteness and inconclusiveness of the taxpayer's response to the audit report. Despite filing detailed replies on 27 February 2024 and 23 April 2024, the respondents rejected the objections raised by the petitioner. The impugned order failed to address the objections raised by the petitioner, leading to the matter being brought before the court.

The impugned order was found to be unreasoned and lacking engagement with the objections raised by the petitioner regarding the audit findings and proposed additions. The respondents, through their counsel, agreed to remit the matter back to the GST Officer for a fresh examination, acknowledging the need for justice to be served. Consequently, the court allowed the writ petition, quashing the order dated 26 April 2024. The GST Officer was directed to conduct a fresh consideration of the SCN and the petitioner's reply, with all arguments from both parties left open for further proceedings on merits.

This judgment highlights the importance of reasoned decision-making by authorities, especially in matters concerning tax assessments and audit findings. It underscores the principle of natural justice and the right of taxpayers to have their objections duly considered and addressed. The court's decision to remit the matter for fresh examination signifies the commitment to fair and thorough adjudication in tax-related disputes, ensuring that all parties have a meaningful opportunity to present their case and have it adjudicated upon fairly.