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Case Law Details

Case Name : Oswal Agencies Pvt Ltd. Vs Union of India & Ors. (Delhi High Court)
Appeal Number : W.P.(C) 208/2024 & CM Appls. 977/2024
Date of Judgement/Order : 12/02/2024
Related Assessment Year :

Oswal Agencies Pvt Ltd. Vs Union of India & Ors. (Delhi High Court)

In a recent case titled Oswal Agencies Pvt Ltd. Vs Union of India & Ors., the Delhi High Court has set aside an order passed under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) and directed the proper officer to reconsider the matter. The order in question, dated 05.12.2023, had resulted in the creation of a demand against the petitioner.

The dispute arose from a Show Cause Notice issued to the petitioner on 28.09.2023, which was duly responded to by the petitioner on 25.10.2023. However, upon examination, the impugned order failed to take into account the petitioner’s reply adequately. Instead, it summarily dismissed the response without providing reasons for its decision.

The petitioner contended that an error had led to the inadvertent mention of details of Impugned Tax Credit in the wrong column (IV (A) (3) instead of IV (A) (5)). Despite this clarification, the order remained unresponsive to the petitioner’s submissions, prompting the court to intervene.

The court observed that the impugned order lacked proper reasoning and disregarded the petitioner’s response. Accordingly, it deemed the order unsustainable and ordered a remit of the matter for fresh consideration.

In its directive, the court set aside the impugned order and instructed the proper officer to issue a fresh speaking order. The officer was directed to thoroughly consider the petitioner’s reply and provide an opportunity for a personal hearing. Importantly, the court clarified that its decision did not reflect any opinion on the merits of the case, preserving the parties’ rights to present their arguments in subsequent proceedings.

With this judgment, the Delhi High Court reaffirmed the principle of due process and emphasized the importance of considering the submissions made by parties before reaching a decision in matters of taxation.


1. Petitioner impugns order dated 05.12.2023, whereby an order under Section 73 of this Central Goods and Services Tax Act, 2017 has been passed and demand is created against the petitioner. It is noticed that a Show Cause Notice dated 28.09.2023 was issued to the petitioner which was replied by the petitioner on 25.10.2023.

2. Perusal of the impugned order shows that the impugned order records that no proper reply has been submitted and the reply stated to be improper was not found to be satisfactory. We note that the order is cryptic order without any reasons and without taking into account the reply filed by the petitioner.

3. The case of the petitioner is that on account of an error, details of Impugned Tax Credit were inadvertently mentioned in column IV (A) (3) instead of column IV (A) (5). None of the averments of the petitioner have been taken into account while passing the impugned order dated 12.2023. Accordingly, we are of the view that said order cannot be sustained and the matter calls for a remit.

4. In view of the above, the impugned order dated 05.12.2023 is set aside. The matter is remitted to the proper officer to pass a fresh speaking order taking into account the reply filed by the petitioner. An opportunity of personal hearing shall also be granted to the petitioner. It is clarified that this Court has neither considered, nor commented upon the merits of the contention of either party. All rights and contentions of the parties are reserved.

5. Petition is disposed of in the above terms.

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April 2024