Demand Order Passed Without Considering Reply of Assessee Was Liable to Be Quashed | HC

Case Details: Daksh Enterprise v. Commissioner of State Tax - [2023] 155 taxmann.com 645 (Gujarat)

Judiciary and Counsel Details

• • Biren Vaishnav & Mrs Mauna M. Bhatt, JJ.
  • Avinash Poddar for the Petitioner.
  • Ms. Shrunjal Shah for the Respondent.

Facts of the Case

The petitioner was a partnership firm and a show cause notice/intimation in Form GST DRC – 01 was issued wherein, a demand had been raised against the petitioner for the financial year 2019-2020. It filed detailed reply but the authorities proceeded on an assumption that pursuant to the show cause notice, a response had to be filed on, or before 14-2-2022, which the petitioner did not file, and therefore, the order was passed. It filed writ petition against the demand order.

High Court Held

The Honorable High Court noted that the petitioner was asked to submit his reply on, or before, 20-2-2022 and the detailed reply was duly filed on 19-2-2022. However, it was evident from the perusal of impugned order that it didn’t reflect consideration of the reply so filed and there was a clear violation of principles of natural justice. Therefore, the Court held the impugned order dated was to be quashed and set aside due to non-consideration of the reply.