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2025 (2) TMI 929 - HC - GSTChallenge to assessment order - impugned orders have been passed without taking into account the documents filed in support of the replies submitted - violation of principles of natural justice - the respondents would submit that they would re-examine the issue and would also submit that the petitioner may once again produce the entire documents which they intend to rely upon - HELD THAT - The impugned orders are set-aside. Liberty is granted to the petitioner to treat the impugned orders as Show Cause Notice and submit its reply along with documentary evidence within a period of two (2) weeks from the date of receipt of a copy of this order failing which the impugned orders stands restored. Petition disposed off.
ISSUES PRESENTED and CONSIDERED:
1. Whether the orders passed under Section 74 of the GST Act were validly challenged on the grounds of not considering the documents filed in support of the replies submitted? 2. Whether the impugned orders were passed without due consideration of the material on record, specifically the documents filed by the petitioner? ISSUE-WISE DETAILED ANALYSIS: Issue 1: Validity of Orders under Section 74 of the GST Act - Relevant legal framework and precedents: The Goods and Services Tax Act, 2017 provides for the issuance of orders under Section 74 for the purpose of determining tax liability based on discrepancies in returns filed by taxpayers. - Court's interpretation and reasoning: The Court considered the submissions made by the petitioner, who argued that the impugned orders were passed without taking into account the documents filed in support of their replies. The petitioner contended that the orders lacked jurisdiction as they pertained to supplies made outside the State. - Key evidence and findings: The petitioner had filed detailed replies along with supporting documents, including invoices demonstrating tax remittance in other States. The impugned orders were criticized for not considering this material. - Application of law to facts: The Court found merit in the petitioner's argument that the orders failed to consider the documentary evidence provided, leading to a lack of jurisdiction in the assessment of tax liability. - Treatment of competing arguments: The respondents indicated a willingness to re-examine the issue and requested the petitioner to resubmit all relevant documents for review. - Conclusions: The Court set aside the impugned orders and granted the petitioner the opportunity to treat them as Show Cause Notices, allowing for the submission of replies and documentary evidence within a specified timeframe. Issue 2: Consideration of Material on Record - Relevant legal framework and precedents: The principle of natural justice requires authorities to consider all relevant material before making decisions that affect the rights of individuals. - Court's interpretation and reasoning: The Court noted the petitioner's argument that the impugned orders failed to take into account the voluminous documents provided, which included financial invoices from other States showing tax remittance. - Key evidence and findings: The Court observed that the impugned orders did not adequately address the material furnished by the petitioner, despite its extensive nature. - Application of law to facts: Based on the lack of consideration of the documentary evidence submitted by the petitioner, the Court concluded that the impugned orders suffered from a non-application of mind to the material on record. - Treatment of competing arguments: The respondents agreed to reconsider the issue and invited the petitioner to resubmit all documents for further review. - Conclusions: The Court set aside the impugned orders, allowing the petitioner to submit its replies and documentary evidence within a specified period, failing which the orders would stand restored. SIGNIFICANT HOLDINGS: The Court's decision to set aside the impugned orders was based on the failure to consider the documents filed by the petitioner, leading to a lack of jurisdiction in the assessment process. The Court emphasized the importance of reviewing all relevant material before making determinations that impact the rights of taxpayers.
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