Non Consideration Of Detailed Reply By GST Proper Officer: HC directs re-adjudication

By CA Prateek Mitruka Goods and Services Tax Judiciary May 31, 2024

TaxGuru Citation: 2024 taxguru.in 2810
Case Name: Ethos Limited Vs Sales Tax Officer Class II Avato Ward 206 Zone 11 Delhi & Anr (Delhi High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Delhi High Court

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Ethos Limited Vs Sales Tax Officer Class II Avato Ward 206 Zone 11 Delhi & Anr (Delhi High Court)

In a recent judgment, the Delhi High Court, set aside an order passed under Section 73 of the Central Goods and Services Tax Act, 2017. The case, was filed by Ethos Limited against the Sales Tax Officer Class II Avato Ward 206 Zone 11 Delhi & Anr. The court’s decision, dated 17th May 2024, highlights the importance of proper consideration of replies and supporting documents by the Proper Officer.

Background

The impugned order, dated 24th April 2024, disposed of the Show Cause Notice dated 10th December 2023, which proposed a demand of Rs.2,92,00,063.00 against the petitioner. The Department had raised various grounds. The petitioner had filed a detailed reply on 20th February 2024, providing responses to each of the grounds along with supporting documents.

Court’s Analysis

The court observed that the impugned order failed to consider the petitioner’s reply and was cryptic in nature. It noted that the reply filed by the petitioner had given full particulars regarding the tax paid on outward supplies, which were alleged to be under-declared. The court found the observation in the impugned order, stating that the reply was devoid of merits without any justification or proper reconciliation, to be unsustainable. It emphasized that the Proper Officer should have at least considered the reply on merits before forming an opinion.