Jindal Trading Co. Through Its Proprietor Sh. Suresh Jindal Vs Union of India and Ors. (Delhi High Court)
The case of Jindal Trading Co. Through Its Proprietor Sh. Suresh Jindal Vs Union of India and Ors. before the Delhi High Court pertains to the issuance of Show Cause Notices (SCNs) and subsequent orders under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act). The petitioner challenges orders dated December 24, 2023, and December 28, 2023, regarding demands totaling Rs. 5,35,393.00/- and Rs. 1,89,65,230.00 respectively, along with penalties.
The crux of the petitioner’s argument lies in the fact that while they were unable to file a reply to one of the SCNs, they did submit a detailed reply to the other SCN. However, the impugned orders failed to consider the reply submitted by the petitioner, rendering the orders cryptic and unjust.
Upon examining the SCNs, the court found them to be vague and unreasoned. The notices merely stated discrepancies without providing substantial evidence or allowing the petitioner to adequately respond. Despite this, the orders were passed without taking into account the petitioner’s detailed reply to one of the SCNs.
In one instance, the order passed was ex-parte, citing the petitioner’s failure to file a reply/explanation within the stipulated period. However, the court found this reasoning unsustainable and ruled that one opportunity must be granted to the petitioner to respond to the SCN before passing such an order.
