Proper Officer is Required to Substantiate Why Reply is Unsatisfactory & Provide Opportunity Before Confirming Demand | HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 28 February, 2024

show cause notice

Case Details: Paras Enterprises v. Union of India - [2024] 159 657 (Delhi)

Judiciary and Counsel Details

    • Sanjeev Sachdeva & Ravinder Dudeja, JJ.
    • Prabhat KumarUtkarsh Kumar, Advs. for the Petitioner. 
    • Raghvendra ShuklaRajeev Aggarwal for the Respondent.

Facts of the Case

The petitioner was dealing in the manufacturing and sale of electrical goods. The GST authorities had issued a notice and alleged that the petitioner had under-declared its output tax and claimed excess input tax credit. It was also alleged that the petitioner had claimed input tax credit from cancelled dealers, return defaulters and tax non-payers.

The petitioner submitted a detailed reply to the show cause notice and provided full disclosures under each of the heads. But the GST authorities simply dismissed the reply by stating that it was not clear and unsatisfactory and issued a demand order. It filed writ petition against the demand order.

High Court Held

The Delhi High Court noted that the GST authorities should have substantiated why the reply was unsatisfactory and should have given an opportunity to clarify or furnish further documentation. Also, the petitioner was not provided with an adequate opportunity to defend the show cause notice by way of a hearing.

Therefore, the Court held that the impugned order was invalid and directed the GST authorities to re-adjudicate matter again and provide specific details and documents which would be needed from the petitioner and it would furnish the explanation and documents within a week.

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied