ORDER QUASHED by DELHI HIGH COURT: Department Overlooked Assesee’s Reply Under GST
1️⃣ Facts of the Case ⚖️
• On 21 May 2024, the Department issued a Show Cause Notice under Section 73 of the Central Goods & Services Tax Act, 2017 to the Assesee, calling for a reply by 21 June 2024.
• The Assesee did not submit any reply by 21 June 2024.
• On 23 July 2024, the Department extended time till 01 August 2024.
• On 26 July 2024, the Assesee furnished a detailed reply.
• Nevertheless, on 09 August 2024, the Department passed the final (impugned) order, erroneously recording that no reply was filed.
2️⃣ Issue
Whether the impugned final order passed under Section 73 of the CGST Act is sustainable when the Department overlooked the reply submitted by the Assesee within the extended deadline.
Court Judgment
The Court quashed the impugned order dated 09 August 2024, holding that the Department must consider the reply filed by the Assesee.
The matter is remanded back to the Department for a fresh determination under #GSTLitigation and in compliance with the principles of #NaturalJustice.
Key Takeaways
• Authorities must consider replies filed within extended deadlines.
• Ignoring a valid reply violates the principle of #NaturalJustice.
• Orders under Section 73 of the CGST Act must adhere to due process.
• Courts will set aside decisions made without fair consideration of the Assesee’s stance.
Title: SNAR HOMES DEVELOPER vs GOODS AND SERVICE TAX OFFICER, WARD-110, ZONE-12, DGST
Court: Delhi High Court
Citation: W.P.(C) 1862/2025 & CM APPL. 8875/2025-(Stay)
Date: 13-Feb-2025