Case Law Details
Karan Kumar Agarwal And HUF Prop Manyata Enterprises Vs Govt of NCT of Delhi & Ors. (Delhi High Court)
The case of Karan Kumar Agarwal And HUF Prop Manyata Enterprises Vs Govt of NCT of Delhi & Ors. heard in the Delhi High Court revolves around the challenging of an order dated December 5, 2023, which disposed of a Show Cause Notice issued on September 25, 2023. This notice proposed a demand of Rs. 1,08,84,820.00 against the petitioner under Section 73 of the Central Goods and Services Tax Act, 2017.
Upon accepting the notice, the court proceeded with the final disposal of the petition. The petitioner argued that they had submitted a detailed reply dated October 11, 2023, which was not considered in the subsequent order. The Show Cause Notice outlined various reasons for the proposed demand, including excess claim of Input Tax Credit (ITC), scrutiny of ITC availed, under declaration of ineligible ITC, and ITC claimed from cancelled dealers, return defaulters, and tax nonpayers. In response, the petitioner provided a comprehensive reply addressing each of these points with supporting documents.
However, the impugned order dated December 5, 2023, dismissed the petitioner’s reply as unsatisfactory. It claimed that the petitioner had not submitted a proper reply justifying the facts of the case, nor had they appeared for a hearing. The Proper Officer concluded that the reply was insufficient without considering its merits or the supporting documents provided.
The court found this observation unsustainable, emphasizing that the petitioner had indeed submitted a detailed reply with supporting documents. The Proper Officer’s failure to consider the reply on its merits and the lack of opportunity given to the petitioner to clarify or provide further details indicated a clear oversight on the part of the officer.
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