Case Law Details
Sun & Sand Industries Africa Pvt Ltd Vs Sales Tax Officer Class-II/Avato Department of Trade And Taxes (Delhi High Court)
The case involves Sun & Sand Industries Africa Pvt Ltd challenging an order dated 19.12.2023 passed under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) by which a demand of Rs.15,19,68,460.00/- was proposed against the petitioner. The petitioner sought additional time to furnish a detailed reply and for a personal hearing but the impugned order did not consider this request. The impugned order proceeded ex-parte due to the petitioner’s failure to file a detailed reply or appear for a personal hearing.
The petitioner argued that they were entitled to up to three adjournments for personal hearings under Section 75(5) of the CGST Act but were not provided this opportunity despite requesting it twice. The respondent contended that no detailed reply was filed by the petitioner despite two opportunities being granted.
The court observed that while Section 75(5) allows for up to three adjournments if sufficient cause is shown, it is not mandatory for the proper officer to grant three adjournments. The decision to adjourn depends on the facts of each case and whether sufficient cause has been shown. In this case, the court found the order to be cryptic and remitted the show cause notice to the proper officer for re-adjudication.
The court directed the petitioner to file a reply to the show cause notice within 30 days, and the proper officer was instructed to re-adjudicate the notice after providing an opportunity for a personal hearing and to pass a fresh order within the prescribed period under Section 75(3) of the Act.
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