Delhi High Court
Decolene Fibers Pvt. Ltd. vs Commissioner Dgst And Ors. on 16 April, 2024
Author: Sanjeev Sachdeva
Bench: Sanjeev Sachdeva
$~48
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 16.04.2024
+ W.P.(C) 5429/2024
DECOLENE FIBERS PVT. LTD. ..... Petitioner
versus
COMMISSIONER DGST AND ORS. ..... Respondents
Advocates who appeared in this case:
For the Petitioner: Mr. Vineet Bhatia, Advocate
For the Respondents: Mr. Rajeev Aggarwal, ASC with Ms. Shaguftha
H. Badhwar, Mr. Prateek Badhwar & Ms.
Samridhi Vats, Advocates
CORAM:-
HON'BLE MR. JUSTICE SANJEEV SACHDEVA
HON'BLE MR. JUSTICE RAVINDER DUDEJA
JUDGMENT
SANJEEV SACHDEVA, J. (ORAL)
1. Petitioner impugns order dated 30.12.2023, whereby the
impugned Show Cause Notice dated 24.09.2023, proposing a demand
of Rs.88,34,701.00 against the Petitioner has been disposed of and a
demand including penalty has been raised against the Petitioner. The
order has been passed under Section 73 of the Central Goods and
Services Tax Act, 2017 (hereinafter referred to as the Act).
2. Issue notice. Notice is accepted by learned counsel appearing
for respondent. With the consent of the parties, petition is taken up for
final disposal today.
3. Learned counsel for Petitioner submits that Petitioner had filed
a detailed reply dated 17.10.2023, however, the impugned order dated
30.12.2023 does not take into consideration the reply submitted by the
Petitioner and is a cryptic order.
4. Perusal of the Show Cause Notice dated 24.09.2023 shows that
the Department has given separate headings i.e., excess claim Input
Tax Credit ["ITC"]; scrutiny of ITC availed on reverse charge; ITC to
be reversed on non-business transactions & exempt supplies; and
under declaration of ineligible ITC. To the said Show Cause Notice, a
detailed reply was furnished by the petitioner giving disclosures under
each of the heads.
5. Impugned order dated 30.12.2023 issued on Show Cause Notice
dated 24.09.2023, after recording the narration records that the reply
uploaded by the taxpayer is unsatisfactory. It states that "And
whereas, in response to the DRC-01, the Taxpayer submitted his reply
in DRC-06 and the reply of the registered person, as well as data
available on GST Portal has been checked / examined and the reply /
submission of the taxpayer is not found to be satisfactory." The Proper
Officer has opined that the reply is unsatisfactory.
6. The observation in the impugned order dated 30.12.2023 is not
sustainable for the reasons that the reply dated 17.10.2023 filed by the
Petitioner is a detailed reply with supporting documents. Proper
Officer had to at least consider the reply on merits and then form an
opinion. He merely held that the reply is unsatisfactory, which ex-
facie shows that Proper Officer has not applied his mind to the reply
submitted by the petitioner.
7. Further, if the Proper Officer was of the view that any further
details were required, the same could have been specifically sought
from the Petitioner. However, the record does not reflect that any such
opportunity was given to the Petitioner to clarify its reply or furnish
further documents/details.
8. In view of the above, the impugned order dated 30.12.2023
cannot be sustained, and the matter is liable to be remitted to the
Proper Officer for re-adjudication. Accordingly, the impugned order
dated 30.12.2023 is set aside and the matter is remitted to the Proper
Officer for re-adjudication.
9. Petitioner shall file a reply to the Show Cause Notice within a
period of 30 days from today. Thereafter, the Proper Officer shall re-
adjudicate the Show Cause Notice after giving an opportunity of
personal hearing and shall pass a fresh speaking order in accordance
with law within the period prescribed under Section 75 (3) of the Act.
10. It is clarified that this Court has neither considered nor
commented upon the merits of the contentions of either party. All
rights and contentions of parties are reserved.
11. The challenge to Notification No. 9 of 2023 with regard to the
initial extension of time is left open.
12. Petition is disposed of in the above terms.
SANJEEV SACHDEVA, J
RAVINDER DUDEJA, J
APRIL 16, 2024
RM
