Mitsubishi Electric India Private Limited Vs Union of India & Ors. (Delhi High Court)
The Hon’ble Delhi High Court Mitsubishi Electric India (P.) Ltd. v. Union of India [W.P. (Civil) No. 7443 of 2024 dated May 22, 2024] set aside the order and held that the Proper Office must atleast consider the reply furnished by the Assessee on merits and then form an opinion.
Facts:
Mitsubishi Electric India (P.) Ltd. (“the Petitioner”) was issued a Show Cause Notice dated December 02, 2023 (“the Impugned SCN”) by the Proper Officer (“the Respondent”) proposing a demand of INR 6,27,53,208/- including the penalty. The Petitioner had filed a detailed reply against the Impugned SCN on January 02, 2024 for each head with the supporting documents. However, a reminder notice was issued to the Petitioner on February 21,2024 which was also duly replied to by the Petitioner on April 23, 2024.
The Respondent did not consider the replies furnished by the Petitioner and passed an Order dated April 26, 2024 (“the Impugned Order”) under Section 73 of the Central Goods and Services Tax, 2017 (“the CGST Act”) which was cryptic.
The Impugned Order recorded that the reply uploaded by the Petitioner was not properly explained despite of sufficient and repeated opportunities provided. Further, a special audit had been conducted, where the auditor did not observe this matter of the Impugned SCN in findings, which indicated that the Petitioner had nothing to say any more in this matter.
