Case Law Details
Aarem Trad Ex Private Limited Vs Sales Tax Officer & Anr. (Delhi High Court)
The Delhi High Court recently addressed a case where Aarem Trad Ex Private Limited contested an order concluding proceedings under Section 73 of the Central Goods and Service Tax Act 2017. The demand was based on an alleged error in claiming Integrated GST credit instead of CGST and SGST credit, attributed to a bona fide clerical mistake.
In the petition, Aarem Trad Ex Private Limited argued that the claimed Integrated GST credit was an inadvertent clerical error and that the correct credits were CGST and SGST. The company asserted that the amount, despite the error, remained to its credit, and they had promptly informed the authorities about the mistake in response to the Show Cause Notice.
The crux of the petitioner’s grievance was the lack of consideration of their detailed reply by the authorities. The impugned order, dated 22.12.2023, failed to address the merits of the explanation provided by the petitioner. Instead, it stated that the reply was not found comprehensive and proceeded to create a demand.
The Delhi High Court, in its analysis, highlighted the inadequacy of the impugned order. The court observed that the order did not provide any reasoning, and the observation about the reply not being comprehensive was not sustainable. It noted that the proper officer did not appear to have considered the petitioner’s detailed reply and set aside the order.
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