Indian Highways Management Company Limited Vs Assistant Commissioner Delhi Department of Trade And Taxes And Anr. (Delhi High Court)
Delhi High Court has set aside a GST demand order issued against Indian Highways Management Company Limited by the Assistant Commissioner of Trade and Taxes. The court found that the order, dated August 16, 2024, lacked proper reasoning and was based on a standardized template, similar to previous cases. The matter was remanded for fresh adjudication, ensuring a fair hearing and consideration of the company’s response to the Show Cause Notice (SCN).
Indian Highways Management Company Limited had filed a writ petition challenging the final order, which confirmed a tax demand without addressing the company’s reply. The Assistant Commissioner cited non-attendance at personal hearings and dismissed the response as “not comprehensible, conceivable, not perspicuous, and ambiguous.” The court observed that such language had become a recurring pattern in GST adjudications, rendering the decision arbitrary.
Referring to the principles of natural justice, the court noted that mere procedural formalities without genuine engagement with the taxpayer’s submissions could not justify a tax demand. It emphasized that a reasoned and speaking order was necessary. Similar concerns were raised in Xerox India Limited v. Assistant Commissioner, where identical phrasing was used to reject a taxpayer’s reply, highlighting systemic issues in adjudication.
