Matter to Be Remitted for Re-adjudication Since Assessee Couldn’t Access Portal & Failed to Submit Reply | HC

Case Details: Singla Enterprises v. Commissioner, Delhi Goods and Service Tax - [2024] 160 taxmann.com 543 (Delhi)

Judiciary and Counsel Details

• Sanjeev Sachdeva & Ravinder Dudeja, JJ.
• Rakesh Kumar, P.K. Gambhir & Akul Mangla, Advs. for the Petitioner.
• Rajiv Aggarwal, Addl. Standing Counsel, Ms Samridhi Vats, Adv., Harpreet Singh, Sr. Standing Counsel, Ms Suhani Mathur & Jatin Kumar Gaur, Advs. for the Respondent.

Facts of the Case

The petitioner was a registered person who received a show cause notice (SCN) from the department. The department proposed a demand against the petitioner in the SCN but the petitioner could not file a reply as he did not have access to the portal as the registration of the petitioner had been cancelled retrospectively. Thereafter, the department passed an order and created demand against the petitioner. It filed writ petition against the order and contended that it was unable to access SCN or file reply.

High Court Held

The Honorable High Court noted that the petitioner was unable to access the SCN or file reply to the said SCN. The Court further noted that the department had given separate headings in the SCN i.e. excess claim of ITC, under declaration of ineligible ITC and ITC claim from cancelled dealers, return defaulters and tax non-payers.

However, the impugned order, after recording the narration, recorded that a demand as ex-parte is created solely on account that petitioner had not filed a reply. Therefore, it was held that the impugned order which had been passed solely on account that petitioner had not filed a reply can’t be sustained and the matter was remitted to proper officer for re-adjudication.