Matter to Remitted Back for Re-adjudication Since Hearing Was Fixed Prior to Reply Furnished By Assessee | HC

Case Details: GAC Shipping India (P.) Ltd. v. Sales Tax Officer - [2024] 159 taxmann.com 686 (Delhi)

Judiciary and Counsel Details

• • Sanjeev Sachdeva & Ravinder Dudeja, JJ.
  • Joseph Kodianthara, V. Shyamohan, Ms Eshita Baruah, Abraham Joseph Marcos & Ms Tissy Annie Thomas, Advs. for the Petitioner.
  • Rajeev Aggarwal & Ms Samridhi Vats, Advs. for the Respondent.

Facts of the Case

In the present case, a show cause notice was issued proposing demand against assessee and thereafter order under section 73 was passed against assessee. It filed writ petition and contended that no intimation of hearing was given to assessee and order was cryptic and did not give reasons and it merely stated that reply submitted by assessee was not to be found satisfactory.

High Court Held

The Honorable High Court noted from the records that a hearing was fixed prior to reply furnished by assessee. Moreover, it was mentioned in the impugned order that the reply was unsatisfactory and the assessee had failed to submit substantial proof in support of its reply but didn’t provide hearing opportunity to substantiate its claim or clarify its reply or furnish further documents/details.

Therefore, the Court held that the assessee was not provided adequate opportunity to defend show cause notice by way of hearing. Thus, the Court concluded that the order could not be sustained and matter was liable to be remitted to proper officer for re-adjudication.