Sahib Textiles Private Limited Vs Sales Tax Officer (Delhi High Court)
In a notable ruling, the Delhi High Court has set aside a GST order issued under Section 73 of the Central Goods & Services Tax Act, 2017 (CGST Act) and the Delhi Goods & Services Tax Act, 2017 (DGST Act) against Sahib Textiles Private Limited. The court’s decision to cancel the GST order was based on the failure to adequately consider the essential contentions raised by the petitioner in response to the Show Cause Notice (SCN).
Background of the Case
The petitioner, Sahib Textiles Private Limited, challenged an order dated April 24, 2024, which imposed a tax demand of ₹88,89,593. This order was issued following an SCN dated December 10, 2023, which alleged incorrect tax filing on inward supplies. The SCN indicated discrepancies between the E-way Bill turnover and GSTR-09, alleging underdeclared tax amounting to ₹88,89,593, comprising SGST, CGST, IGST, and Cess.
Petitioner’s Arguments
The petitioner contested the order on several grounds:
Non-consideration of Replies: The impugned order did not address any of the contentions or evidence provided by the petitioner in its response to the SCN. The petitioner had submitted a detailed ledger and invoices, which were not acknowledged or discussed in the order.
