Case Law Details
Ethos Limited Vs Assistant Commissioner Department of Trade And Taxes & Anr. (Delhi High Court)
Introduction: In a recent judgment, the Delhi High Court addressed the legality of rejecting a claim for Input Tax Credit (ITC) without due consideration of the taxpayer’s response. The case of Ethos Limited Vs Assistant Commissioner Department of Trade And Taxes & Anr. sheds light on the importance of a thorough review process in tax matters.
Detailed Analysis: The petitioner contested an order dated 23.12.2023, which imposed a demand of Rs. 1,36,98,144.00, including penalties, under Section 73 of the Central Goods and Services Tax Act, 2017. The crux of the petitioner’s argument lay in the assertion that their detailed reply to the Show Cause Notice dated 25.09.2023 had not been adequately considered by the authorities.
Despite the petitioner’s comprehensive response addressing each aspect of the Show Cause Notice, the impugned order merely dismissed it as unsatisfactory. The court highlighted the lack of proper assessment and failure to seek further clarification or documents if deemed necessary. This disregard for due process rendered the rejection of the claim invalid.
The court emphasized the obligation of the Proper Officer to diligently evaluate the taxpayer’s submissions before concluding on their adequacy. By setting aside the impugned order and remitting the matter for re-adjudication, the court reaffirmed the principles of fairness and procedural correctness.
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