Full Judgment Text
$~105
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment delivered on: 22.05.2024
+ W.P.(C)-7417/2024 & CM APPL. 30942-43/2024
FUTURE GENERALI INDIA INSURANCE
COMPANY LIMITED ..... Petitioner
versus
GOODS AND SERVICE TAX OFFICER (GSTO)
WARD 203 & ANR. ..... Respondents
Advocates who appeared in this case:
For the Petitioner: Mr., Advocates
For the Respondents: Mr. Rajeev Aggarwal, ASC with Mr. Prateek
Badhwar and Ms. Shaguftha Badhwar, Advocates
CORAM:-
HON’BLE MR. JUSTICE SANJEEV SACHDEVA
HON'BLE MR. JUSTICE RAVINDER DUDEJA
JUDGMENT
SANJEEV SACHDEVA, J. (ORAL)
1. Petitioner impugns order dated 29.04.2024 whereby the impugned
Show Cause Notice dated 09.12.2023 proposing a demand of
Rs.11,50,530.00/- against the petitioner had been disposed of and demand
including penalty has been raised against the petitioner. The order has been
Signature Not Verified
W.P.(C)-7417/2024 Page 1 of 4
Digitally Signed
By:RASHIM KAPOOR
Signing Date:27.05.2024
15:26:51
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 09.01.2024 and an additional reply dated 27.02.2024,
however, the impugned order dated 29.04.2024 does not take into
consideration the reply submitted by the Petitioner and is a cryptic order.
4. Perusal of the Show Cause Notice dated 09.12.2023 shows that the
Department has raised grounds under separate headings i.e., under
declaration of output tax; the tax on outward supplies under declared on
reconciliation of data in GSRT-09; excess claim of ITC; scrutiny of ITC
reversals; ITC to be reversed on non-business transaction & exempt
supplies and ITC claimed from cancelled dealers, return defaulters and tax
non payers. To the said Show Cause Notice, a detailed reply was furnished
by the petitioner giving response under each of the heads with supporting
documents.
5. The impugned order, however, after recording the narration records
that the reply uploaded by the taxpayer is not properly replied/filed. It states
that “The taxpayer has submitted his reply on the GSTIN portal. The
undersigned examined the reply and the documents submitted by him on the
GSTIN portal and found the taxpayer has not properly replied/filed
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W.P.(C)-7417/2024 Page 2 of 4
Digitally Signed
By:RASHIM KAPOOR
Signing Date:27.05.2024
15:26:51
explanation despite of sufficient and repeated opportunities provided to
him. Now, therefore, the undersigned is left without any option and
accordingly, a demand is being created towards Tax /Interest amount
already confirmed through SCN/ DRC-01 (Copy attached) in accordance
with the provisions of CGST / DGST Act & Rules, 2017.” The Proper
Officer has opined that the reply is not properly replied/filed.
6. The observation in the impugned order dated 29.04.2024 is not
sustainable for the reasons that the reply dated 09.01.2024 and 27.02.2024
filed by the Petitioner are detailed replies 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 not properly replied/filed without
any justification 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 29.04.2024 cannot
be sustained and is set aside. The Show Cause Notice is remitted to the
Proper Officer for re-adjudication.
9. Petitioner may file a further reply to the Show Cause Notice within a
period of 30 days from today. Thereafter, the Proper Officer shall re-
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W.P.(C)-7417/2024 Page 3 of 4
Digitally Signed
By:RASHIM KAPOOR
Signing Date:27.05.2024
15:26:51
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. 56 of 2023 with regard to the
extension of time is left open.
12. Petition is disposed of in the above terms.
SANJEEV SACHDEVA, J
MAY 22, 2024 RAVINDER DUDEJA, J
MR
Signature Not Verified
W.P.(C)-7417/2024 Page 4 of 4
Digitally Signed
By:RASHIM KAPOOR
Signing Date:27.05.2024
15:26:51