Humble Plastics Pvt. Ltd. Vs Union of India & Ors. (Gujarat High Court)
GST Section 161 rectification cannot supplant reasons-Demand order set aside for non-consideration of reply; matter remanded for fresh adjudication: Gujarat HC
The petitioner is a trader in plastics. It purchases and sells goods. The GST authorities alleged that it had not received the goods; hence; not eligible to claim input tax credit. A detailed reply was filed. Without considering the same; order confirming demand of over Rs.6 crores; along with interest and penalty; was passed. It filed a writ petition. During the pendency; the department passed rectification order under Section 161 of the CGST Act supplanting reasons for the order and dealing with grounds urged in the reply.
The Hon’ble Gujarat High Court set aside the order and allowed the writ petition. It held: (i) the scope of Section 161 provides for rectification only; being limited; cannot be invoked to supplant reasons; (ii) faced with this; counsel for the department agreed to withers such orders and pass fresh order in original; (iii) accordingly; directs to hear the Petitioner and pass fresh orders after considering the reply filed by the Petitioner.
Argued by Adv. Bharat Raichandani i/b UBR Legal.
