SPS Enterprises Vs Commissioner of Delhi Goods And Service Tax & Anr. (Delhi High Court)
Introduction: In a recent judgment, the Delhi High Court addressed the case of SPS Enterprises versus the Commissioner of Delhi Goods and Service Tax & Another. The court invalidated an assessment order passed under Section 73 of the Central Goods and Services Tax Act, 2017, due to the non-consideration of the petitioner’s reply and evidence.
Analysis: The petitioner contested an order dated 29.12.2023, which proposed a demand of Rs. 5,46,288.00 against them under the Central Goods and Services Tax Act, 2017. Despite submitting a detailed reply dated 23.12.2023 with supporting documents, the impugned order did not adequately consider the petitioner’s submissions.
While the show cause notice outlined reasons for the demand, the impugned order concluded that no satisfactory reply or substantial documents were submitted by the taxpayer. However, this observation contradicted the petitioner’s detailed response and supporting evidence.
The court noted that the Proper Officer failed to consider the petitioner’s reply on merits and hastily concluded that it was unsatisfactory. Moreover, the petitioner was not given an opportunity to clarify their reply or provide further details.
Considering these deficiencies, the court set aside the impugned order and remitted the show cause notice to the Proper Officer for re-adjudication. The Proper Officer was directed to withdraw all punitive actions taken against the petitioner and provide them with an opportunity to file a further reply within 30 days. Subsequently, the Proper Officer was instructed to re-adjudicate the matter after a personal hearing and pass a fresh speaking order in accordance with the law.
