Holy Land Marketing Private Limited Vs Sales Tax Officer Class II/Avato (Delhi High Court)
Conclusion: None of the contentions raised by assessee in response to the Show Cause Notice had even been adverted to in the impugned order, therefore, there was a lack of reasoning, non-consideration of the reply and non-application of mind in passing the impugned order, it was held that the impugned order was not tenable and deserved to be set aside.
Held: The present petition also sought quashing of Notification No. 56/2023-Central Tax dated 28th December, 2023 and Notification No. 56/2023-State Tax dated 11th September, 2024 on the grounds of it being ultra vires of Section 168-A of the Central Goods and Services Tax Act, 2017 read with Delhi Goods Services Tax Act, 2017. Vide the Show Cause Notice, assessee was given an opportunity to show cause as to why they had not declared the correct tax liability in the annual returns of GSTR-09. According to the Show Cause Notice there was a difference in the turnover of the company and there was an under-declaration of the output tax and accordingly assessee had been directed to pay the tax liability of Rs. 46,49,420/-. In response to the said Show Cause Notice, replies were given by assessee explaining in detail the position of assessee. Reminder notices were issued by the Department again against assessee. Assessee replied to the same submitting various documents along with its reply. Subsequent to which the impugned order dated 31st August 2024 was passed. It was held that none of the contentions raised by assessee in response to the Show Cause Notice had even been adverted to in the impugned order. The order was completely silent on the grounds and the reasons for which the reply of assessee had not been considered or had been rejected. In view of the lack of reasoning, non-consideration of the reply and non-application of mind in passing the impugned order, it was held that the impugned order was not tenable and deserved to be set aside. The matter was remanded for fresh consideration of the Show Cause notice and the replies given by assessee.
