Madras HC Set Aside Non-speaking Order Which Failed to Consider Reply/Objections Made by Assessee

Case Details: Chennai Silks v. Assistant Commissioner (ST) (FAC) - [2023] 157 taxmann.com 65 (Madras)

Judiciary and Counsel Details

• • Krishnan Ramasamy, J.
  • T.R. Ramesh for the Petitioner.
  • V. Prashanth Kiran for the Respondent.

Facts of the Case

The petitioner was engaged in business of trading of garments and other allied items. The GST department issued an intimation in Form DRC- 01A with regard to ascertained tax liability under Section 74 wherein, issues were mainly concerned with reconciliation of returns and books, ITC verification with GSTR-2A among other things.

The petitioner had replied and thereafter, DRC-01 show cause notice was issued which was also replied but an order came to be issued by department without considering replies. It filed writ petition against the order.

High Court Held

The Honorable High Court noted that once assessee filed reply/objections pursuant to show cause notice, it was bounden duty of revenue to pass a speaking order, providing reasons for rejection of the reply/objections raised by assessee. In instant case, the GST department admittedly, failed to consider reply/objections made by petitioner pursuant to show cause notice and passed a non-speaking order.

Therefore, the failure on part of revenue to address reply/objections of petitioner by a speaking order, would vitiate impugned proceedings. Thus, the Court held that the impugned order was to be set aside and matter was to be remitted back for re-considerations.