2024 (2) TMI 1001 - HC - GST

Violation of principles of natural justice (non-speaking order) - impugned order is cryptic order merely using a template and does not give any reason - demand under Section 16 (2)(c) and 17 (5) of the Goods and Services Tax Act, 2017 - HELD THAT - Perusal of the order shows that the order is a cryptic order without giving any details. After narrating the recitals, it merely records in view of above, there is no option but to proceed with the demands mentioned in the Show Cause Notice . The impugned order is accordingly set aside. Petitioner is given an opportunity to file a reply to the Show Cause Notice within one week from today. On such a reply being filed, the proper officer shall adjudicate the Show Cause Notice afresh within a period of four weeks after giving an opportunity of personal hearing to the petitioner to the petitioner. The proper officer shall pass a detailed speaking order. Petition disposed off.

Summary

Issues involved: Impugning an order setting aside a Show Cause Notice and demand created against the petitioner u/s 16 (2)(c) and 17 (5) of the Goods and Services Tax Act, 2017.

Impugned Order Set Aside:
The petitioner challenged the order dated 24.12.2023, which set aside a Show Cause Notice dated 24.09.2023 and created a demand against the petitioner u/s 16 (2)(c) and 17 (5) of the Goods and Services Tax Act, 2017. The petitioner, through counsel, argued that the inability to respond to the Show Cause Notice was due to a family bereavement. It was contended that the demand should not have been raised, especially as a duplicate demand was made under both provisions. Criticism was also directed at the cryptic nature of the impugned order, which lacked reasoning. The petitioner sought an opportunity to respond to the Show Cause Notice and requested a fresh adjudication.

Court's Decision:
Upon review, the Court noted that the impugned order was indeed lacking in detail, merely stating a necessity to proceed with the demands mentioned in the Show Cause Notice without explanation. Consequently, the impugned order was set aside. The petitioner was granted one week to file a reply to the Show Cause Notice. Subsequently, the proper officer was directed to re-adjudicate the Show Cause Notice within four weeks, providing the petitioner with a chance for a personal hearing. It was mandated that a detailed speaking order be issued by the proper officer.

Disposition:
The petition was disposed of with the above directives, ensuring that all rights and contentions of the parties were reserved for future consideration.