HC Set-aside Order Passed by AO Stating That Reply to SCN Wasn’t Properly Filed Without Any Justification

Case Details: Future Generali India Insurance Co. Ltd. v. Goods and Service Tax Officer (GSTO) - [2024] 163 taxmann.com 258 (Delhi)

Judiciary and Counsel Details

• Sanjeev Sachdeva & Ravinder Dudeja, JJ.
• Yogendra Aldak, Agrim Arora & Sumit Khadaria, Advs. for the Petitioner.
• Rajeev Aggarwal, ASC, Prateek Badhwar, Ms Shaguftha H. Badhwar, Ms Samridhi Vats, Advs. & Ms Uma Prasuna Bachu, SPC for the Respondent.

Facts of the Case

The petitioner received a show cause notice (SCN) proposing a demand of Rs.7,02,71,577.00. It submitted detailed replies but the proper officer passed the order stating that the replies were not properly filed despite of sufficient opportunities provided. It filed writ petition against the order and contended that the order was passed without considering merits of the case.

High Court Held

The Honorable High Court noted that the department enclosed the findings of the Special Audit in Form GST ADT-04 and no further reasons were given in the said SCN. The Special Audit Report gave findings under separate headings and to the said SCN, detailed replies were furnished by the petitioner giving response under each of the heads with supporting documents.

However, the impugned order recorded the narration that the reply uploaded by the taxpayer was not properly replied/filed. The Court noted that the observation in the impugned order was not sustainable for the reasons that the replies filed by the petitioner were detailed replies with supporting documents. Therefore, it was held that the impugned order was liable to be set aside and SCN was remitted for re-adjudication.