2024 (12) TMI 131 - HC - GST

Challenge to impugned order - no proper reasoning in the impugned order - HELD THAT - As is manifest from the record, upon the issuance of the Show Cause Notice SCN dated 29 May 2024, the petitioner had filed a detailed reply on 29 June 2024. However, the same has come to be perfunctorily rejected in terms of the order impugned - Apart from the Assistant Commissioner having observed that the reply filed by the tax payer was not comprehensible, conceivable, not perspicuous and is ambiguous , no further reasons have been assigned. In fact, it is constrained to observe that the said language appears to have attained the status of a template and is being uniformly used while passing orders like the one which is impugned here. Since the impugned order is wholly unreasoned, the same cannot be sustained - petition allowed.

Summary

Issues:
Challenge to impugned order dated 16.08.2024, Rejection of taxpayer's reply, Lack of reasoning in the impugned order, Setting aside the impugned order, Reserving liberty to respondents to proceed afresh, Validity of Notifications 49/2019-Central Tax and 56/2023-Central Tax.

Analysis:
The petitioner filed a writ petition challenging the final order dated 16 August 2024, which confirmed a proposed demand against the taxpayer. The Assistant Commissioner noted that the taxpayer failed to attend the personal hearing despite ample opportunity and that the reply filed was deemed incomprehensible and ambiguous. The Court observed that the rejection lacked detailed reasoning and appeared to be a standardized template used in such cases, leading to the order being considered unreasoned and unsustainable.

Upon review, the Court found the impugned order to be wholly unreasoned and set it aside. The Court directed the Assistant Commissioner to initiate fresh proceedings based on the Show Cause Notice issued earlier, and to pass a new order considering the taxpayer's reply. The Court emphasized the need for a fresh, reasoned order that takes into account the submissions made by the taxpayer, while keeping all rights and contentions of the parties open for further consideration.

Furthermore, the Court reserved the petitioner's right to challenge the validity of Notification No. 49/2019-Central Tax dated 09 October 2019 and Notification No. 56/2023-Central Tax dated 28 December 2023 in separate proceedings if necessary. This reservation allows the petitioner to address any concerns regarding the legality and constitutionality of the mentioned notifications at a later stage, ensuring a comprehensive review of all relevant issues in the case.