Case Law Details
Services International Vs Union of India And Ors (Delhi High Court)
The Delhi High Court recently rendered a significant judgment on a case involving Services International versus Union of India and others, challenging an order dated 18.04.2024. The order pertained to the disposal of a Show Cause Notice (SCN) dated 06.12.2023, proposing a substantial demand against the petitioner under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017. The petitioner contested the order, citing lack of opportunity to respond to the SCN.
The petitioner contended that they received the SCN in December 2023 and sought an extension to respond due to the accountant’s illness. However, without any communication regarding the extension, the impugned order was passed in April 2024. The petitioner argued for a fair opportunity to reply to the SCN before adjudication, emphasizing the necessity of due process.
The court scrutinized the circumstances and found merit in the petitioner’s plea. It observed discrepancies in the proceedings, including the absence of a notice for a personal hearing. Consequently, the court set aside the impugned order, emphasizing the importance of granting the petitioner an opportunity to respond to the SCN. The matter was remitted to the Proper Officer for re-adjudication, with a directive for a fresh speaking order.
Furthermore, the court clarified that its decision neither reflects nor comments on the merits of the parties’ contentions, ensuring that all rights and contentions remain reserved. Additionally, the challenge to Notification No. 9 of 2023, regarding the initial extension of time, was left open for future consideration.
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