Syndicate Bank Vs Department of Trade And Taxes (Delhi High Court)
Delhi High Court ruled on the writ petition filed by Syndicate Bank, challenging the order dated August 20, 2024, issued by the GST Officer under Section 73 of the Central Goods and Services Tax Act, 2017. The case pertained to tax demands based on alleged under-declaration of output tax and ineligible Input Tax Credit (ITC). The GST Officer determined that the bank had failed to reconcile discrepancies in GSTR-1 and GSTR-9 filings, leading to a tax demand of ₹1,14,91,237 in CGST and SGST each. Additionally, a demand of ₹5,34,477 in CGST and SGST was raised due to insufficient justification for claimed ITC. However, the court found that the final order did not address or consider the bank’s response to the Show Cause Notice (SCN), rendering the decision unreasoned.
Acknowledging the lack of a reasoned conclusion, the Delhi High Court set aside the impugned order, emphasizing the necessity of a fair hearing and proper justification in tax assessments. Instead of keeping the matter pending, the court remanded the case for reconsideration by the GST Officer. The ruling ensures that the SCN proceedings are re-examined in accordance with legal principles, providing the petitioner another opportunity to present its case. This judgment reinforces the importance of procedural fairness in GST adjudications.
