Case Law Details
Federal Bank Ltd Vs Assistant Commissioner DGST (Delhi High Court)
The recent decision by the Delhi High Court in the case of Federal Bank Ltd Vs Assistant Commissioner DGST has significant implications. Here’s a detailed analysis:
The petitioner challenges an order dated 26.12.2023, confirming a show cause notice (SCN) proposing a demand under Section 73 of the Central Goods and Services Tax Act, 2017. The notice, issued on 23.09.2023, lacked adequate time for the petitioner to prepare a response due to a short notice period compounded by a holiday. Despite submitting a detailed reply on 21.10.2023, the subsequent order failed to provide reasons for dismissal, merely stating the reply was unsatisfactory.
The lack of opportunity for clarification or submission of further documents is notable. The hearing scheduled on 12.2023 was set after office hours on 24.12.2023, the day before a gazetted holiday. This deprived the petitioner of a fair chance to present their case.
The court’s decision to set aside the order emphasizes the importance of due process. The matter is remitted to the Proper Officer for re-adjudication, with directions to provide necessary details to the petitioner and allow adequate time for response.
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