Order Set Aside as SCN was Disposed of Without Considering Detailed Reply Filed by Assessee | HC

Case Details: Balaji Medical and Diagnostic Research Centre v. Union of India - [2024] 160 taxmann.com 295 (Delhi)

Judiciary and Counsel Details

• • Sanjeev Sachdeva & Ravinder Dudeja, JJ.
  • Mr Harsh Makhija, Advocate for the Petitioner.
  • Mr Rajeev Aggarwal, Mr Jitesh Vikram Srivastava, Mr Prajesh Vikram Srivastava, Advocate. Mr Aditya Singla, Mr Anand Pandey, Advocate for the Respondents.

Facts of the Case

In the present case, the show cause notice (SCN) proposing a demand including penalty was issued against petitioner. It submitted a detailed reply to said SCN, however order under section 73 was issued without considering said reply submitted by petitioner. It filed writ petition against the order passed by department.

High Court Held

The Honorable High Court noted that the Proper Officer had to at least consider reply on merits and then form an opinion whether reply was not satisfactory or not. However, in the instant case, the officer merely held that reply was not satisfactory which ex facie showed that the Proper Officer had not applied his mind to consider reply submitted by petitioner.

Further, the Court noted that if Proper Officer was of view that reply was not satisfactory and further details were required, the same could have been specifically sought from petitioner. However, such opportunity was not given to petitioner to clarify its reply or furnish further documents details. Therefore, the Court held that the impugned order could not be sustained and same was to be set aside and matter was remanded back.