HC Quashed Order Rejecting ITC Claim of Assessee as Proper Officer Hadn’t Applied His Mind to Reply Submitted by Assessee

Case Details: Kaycee Polymers (P.) Ltd. v. Union of India - [2024] 162 taxmann.com 507 (Delhi)

Judiciary and Counsel Details

• Sanjeev Sachdeva & Ravinder Dudeja, JJ.
• Rajesh Jain, Virag Tiwari, Ramashish & Ms Tanya Saraswat, Advs. for the Petitioner.
• Anurag Ojha & Subham Kumar, Advs. for the Respondent.

Facts of the Case

The petitioner was engaged in the business of manufacturing and supply of plastic products. The department issued a show cause notice proposing a demand of Rs. 50,00,080.00 against the petitioner. It filed a detailed reply but the demand along with penalty was raised against the petitioner. The petitioner filed writ petition against the demand and submitted that the impugned order didn’t take into consideration the reply submitted by the petitioner and was a cryptic order.

High Court Held

The Honorable High Court noted that the proper officer had not applied his mind to the reply submitted by the petitioner. The Court also noted that if the proper officer was of the view that any further details were required, the same could have been specifically sought from the petitioner. Therefore, the Court held that the matter was liable to be remitted to the proper officer for re-adjudication and the impugned order was to be set aside.