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Case Law Details

Case Name : Indochem And Polymers Vs Sales Tax Officer (Delhi High Court)
Appeal Number : W.P.(C) 1532/2024
Date of Judgement/Order : 21/02/2024
Related Assessment Year :

Indochem And Polymers Vs Sales Tax Officer (Delhi High Court)

The case of Indochem And Polymers Vs Sales Tax Officer Class II Avato Ward 207 Zone 11, brought before the Delhi High Court, involves the challenge against an order demanding GST without proper consideration of the petitioner’s response.

The Delhi High Court scrutinized the order passed on December 30, 2023, which concluded proceedings under Section 73 of the Act and imposed a demand on the petitioner. Despite the petitioner’s submission of a detailed point-wise reply to the Show Cause Notice received on September 24, 2023, the court observed that the order failed to acknowledge the sufficiency of the petitioner’s explanation.

The court noted that the order indicated no proper reply/explanation had been received from the taxpayer, contrary to the fact that the petitioner had indeed submitted a comprehensive response. The proper officer’s failure to consider the petitioner’s reply on its merits and form an opinion regarding its sufficiency was deemed unsustainable.

Consequently, the Delhi High Court set aside the impugned order and directed the matter to be remitted to the proper officer for re-adjudication of the show cause notice within four weeks, ensuring the petitioner is granted a personal hearing.

The ruling of the Delhi High Court in the Indochem And Polymers Vs Sales Tax Officer case underscores the importance of due consideration of the petitioner’s response in tax proceedings. By directing re-adjudication, the court upholds principles of fairness and procedural justice, ensuring that decisions are based on a thorough examination of all relevant factors.

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

1. Issue notice. Notice is accepted by learned counsel appearing for respondent. With the consent of the parties, the petition is taken up for hearing today.

2. Petitioner impugns order dated 30.12.2023 whereby the proceedings under Section 73 of the Act have been concluded and a demand has been created against the petitioner.

GST demand passed without considering detailed reply Delhi HC directs re-adjudication

3. Learned counsel for petitioner submits that Show Cause Notice dated 24.09.2023 was received by the petitioner to which a detailed point-wise reply was submitted.

4. It is noticed that the order dated 30.12.2023 records that no proper reply/explanation has been received from the tax-payer despite sufficient and repeated opportunities which indicates that the tax­payer has nothing to say in the matter.

5. The observation in the impugned order dated 30.12.2023 is not sustainable for the reasons that the reply filed by the petitioner is a detailed reply.

6. The proper officer had to at least consider the reply on merits and then form an opinion whether the explanation was sufficient or He merely held that no proper reply/explanation has been received which ex-facie shows that proper officer has not even looked at the reply submitted by the petitioner.

7. Accordingly, impugned order dated 30.12.2023 is set aside. The matter is remitted to the proper officer for re-adjudication of the show cause notice issued under Section 73 of the Act within four weeks after giving an opportunity of personal hearing to the petitioner.

8. The petition is accordingly disposed of in the above terms.

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