Case Law Details
Diamond Beverages Private Limited Vs Assistant Commissioner of CGST & CX (Calcutta High Court)
Calcutta High Court sets aside show cause notice in Diamond Beverages case, emphasizing the necessity of thorough examination and due application of mind.
The recent judgment by the Calcutta High Court in the case of M/s. Diamond Beverages (P.) Ltd. v. Assistant Commissioner of CGST & CX [M.A.T. No. 1948 of 2023 and I.A. No. CAN of 2023 dated December 15, 2023] has brought attention to the necessity of a thorough application of mind in issuing Show Cause Notices (SCNs). The court’s observation that the SCN lacked due application of mind, despite considering appellant submissions, sets a significant precedent. This article delves into the details of the case, highlighting the facts, issues, and the court’s directive to remand the matter back to the Adjudicating Authority.
Hon’ble Calcutta High Court held that submissions made by appellants in their reply to pre-show cause notice appeared to have been considered. However, except extracting the reply given by the appellants, the authority has not dealt with the contentions, which were placed by the appellants in the reply to the pre-show cause notice. Thus, this would be sufficient to hold that the show cause notice has been issued without due application of mind. Hence, Show Cause Notice was set aside and subsequently, the matter was remanded back the matter to the Adjudicating Authority at the level of pre-show cause notice and the writ petition was allowed.
Facts:
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