Case Law Details
Kaycee Polymers Pvt. Ltd. Vs Union of India Revenue Secretary & Ors. (Delhi High court)
Introduction: In the case of Kaycee Polymers Pvt. Ltd. vs Union of India (W.P.(C) 5260/2024), the Delhi High Court scrutinized an order dismissing a taxpayer’s reply and upheld a demand with penalties. The court found the order unsustainable, emphasizing the necessity for proper consideration of taxpayer responses by tax authorities. Delhi High court held that, order passed without considering the reply filed by taxpayer, is liable to be set aside.
Fact of the case:- Show Cause Notice, proposing a demand against the Petitioner has been disposed of and a demand including penalty has been raised against the Petitioner. The Department has given separate headings i.e., excess claim Input Tax Credit [“ITC”]; under declaration of ineligible ITC; and ITC claimed from cancelled dealers, return defaulters & tax non payers. To the said Show Cause Notice, a detailed reply was furnished by the petitioner giving disclosures under each of the heads.
However, after recording the narration records that the reply uploaded by the taxpayer is devoid of merits and without any justification. It states that “And whereas, the taxpayer has filed their objections/reply online on portal through DRC-06 which has been examined thoroughly and was found to be devoid of merits**** Further, the reply on other issues is found devoid of merits without any justification or proper reconciliation, therefore, the demand raised with detailed reasons/explanations in SCN/DRC-01 is upheld. DRC-07 is issued accordingly” The Proper Officer has opined that the reply is devoid of merits and without any justification.
Court Finding and conclusion:
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