2024 (12) TMI 138 - HC - GST

Violation of principles of natural justice - unreasoned impugned order - Rejection of application for rectification of order - extension of limitation for concluding the adjudication of show cause notice issued under Section 73 of the CGST Act, 2017 - HELD THAT - There has been an apparent and clear failure to assign any reasons or engage with the reply that had been filed. Since the impugned order is wholly unreasoned, it cannot be sustained. The impugned order dated 30 December 2023 is quashed - petition allowed.

Summary

Issues:
Challenge to order dated 30 December 2023 under Section 73 of the Central Goods and Services Tax Act, 2017.

Analysis:
The writ petition sought various reliefs, including quashing of the Impugned Show Cause Notice (SCN) dated 29.09.2023, Impugned Order dated 30.12.2023, and Impugned Order dated 06.09.2024. The challenge primarily focused on the final decision taken by the respondents under Section 73 of the Act. The petitioner had responded to the original notice under Section 73 by filing a detailed reply. However, the Goods & Services Tax officer finalized the proceedings without engaging with the reply filed by the petitioner. The officer confirmed the demand of tax and interest without providing any reasons or justification for disregarding the petitioner's submissions. This lack of reasoning rendered the impugned order unsustainable.

The Court noted the failure of the officer to provide any reasons for disregarding the petitioner's reply and concluded that the order dated 30 December 2023 could not be sustained due to its unreasoned nature. In response to this, the Court allowed the writ petition and quashed the impugned order. The matter was directed to be taken up by the proper officer for re-adjudication, considering the replies submitted by the petitioner. The Court kept all rights and contentions of the parties open for further consideration on merits.

The Court, while disposing of the writ petition on the grounds mentioned, kept open the challenge to Notification No. 9/2023-Central Tax dated 31 March 2023 for potential consideration in future proceedings if necessary. The judgment emphasized the importance of providing reasoned decisions in tax proceedings and highlighted the need for proper engagement with submissions made by taxpayers before finalizing tax demands and orders.