Case Law Details
Max Healthcare Institute Limited Vs Union of India & Ors. (Delhi High Court)
The recent judgment of the Delhi High Court in the case of Max Healthcare Institute Limited Vs Union of India & Ors. addresses the issue of non-application of mind by the Proper Officer while passing an order under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner challenged the order dated 24.12.2023, alleging that the Proper Officer failed to consider their detailed reply to the Show Cause Notice, resulting in an erroneous demand raised against them.
Detailed Analysis
The petitioner submitted a comprehensive reply to the Show Cause Notice, addressing each of the allegations raised by the Department. However, the impugned order merely stated that the reply was devoid of merits without providing any reasoned analysis. The court observed that this indicated a lack of application of mind by the Proper Officer.
Furthermore, the court noted that the Proper Officer did not seek further clarification or documents from the petitioner if deemed necessary. This failure to afford the petitioner an opportunity to clarify or supplement their reply was deemed unfair.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
