Avantha Holdings Limited Vs Proper Officer GST (Delhi High Court)
In Avantha Holdings Limited vs Proper Officer GST, the Delhi High Court examined a petition challenging an order dated 29.04.2024 passed under Section 73(9) of the Central Goods and Services Tax Act, 2017 and the Delhi Goods and Services Tax Act, 2017. The order arose from a Show Cause Notice dated 30.01.2024 alleging additional tax demand on account of “unbilled revenue.” The petitioner contended that it had already paid the applicable tax along with interest and had furnished relevant details in response to the notice.
The Court observed that the adjudicating authority’s order did not provide any reasons for rejecting the petitioner’s explanation. Although the reply was acknowledged, it was dismissed as incomplete or unsupported without proper justification, and no analysis of the submitted material was reflected in the order. The Court held that the authority had failed to consider the petitioner’s response and had not provided any reasoning for its conclusion.
In view of this, the Court set aside the impugned order and remanded the matter to the adjudicating authority for fresh consideration. The authority was directed to pass a reasoned (speaking) order after granting the petitioner an opportunity of being heard. It was also permitted to seek additional documents or material if required for proper adjudication of the Show Cause Notice. The petition was disposed of on these terms.
