HC directs re-adjudication as officer failed to seek clarification or additional documents before dismissing reply as unsatisfactory

Tim Delhi Airport Advertising Private Limited Vs Sales Tax Officer (Delhi High Court)

In the legal battle between Tim Delhi Airport Advertising Private Limited and the Sales Tax Officer, the Delhi High Court steps in to address the validity of the rejection of an Input Tax Credit (ITC) claim. The court’s decision sheds light on the importance of clarity and proper consideration in tax dispute resolutions.

The crux of the matter lies in the rejection of Tim Delhi Airport Advertising Pvt Ltd’s ITC claim, amounting to Rs. 2,18,73,860.00, along with penalties. The petitioner argues that their detailed reply to the show cause notice was disregarded, and the subsequent order lacked proper consideration.

The High Court scrutinized the case, highlighting flaws in the order’s reasoning. It emphasized that the petitioner’s reply was comprehensive and should have been evaluated on its merits. The court found the decision lacking in thoroughness, as the officer failed to seek clarification or additional documents before dismissing the reply as unsatisfactory.

Consequently, the court ruled the order unsustainable and directed re-adjudication. It instructed the Proper Officer to communicate any necessary details or documents required from the petitioner and mandated a fresh examination of the matter, allowing for an additional reply from the petitioner.

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