In a significant case, the Delhi High Court directed re adjudication when the order passed under Section 73 of the  Central Goods and Services Tax Act, 2017 without providing opportunity for clarifying the reply with respect to the show Cause Notice ( SCN ).

The writ petition was filed by the petitioner Decolene Fibers Pvt. Ltd Against the show cause notice and order passed under Section 73 of the  Central Goods and Services Tax Act by  proposing a demand of Rs.88,34,701.00. During the adjudication the Vineet Bhatia ,counsel for the petitioner submitted that  Petitioner had filed a detailed reply dated 17.10.2023, however, the impugned order dated 30.12.2023 does not take into consideration the reply submitted by the Petitioner and is a cryptic order.

While deciding the case the bench observed that Impugned order dated 30.12.2023 issued on Show Cause Notice dated 24.09.2023, after recording the narration records that the reply uploaded by the taxpayer is unsatisfactory. Further it was observed that the proper officer no  opportunity was given to the Petitioner to clarify its reply or furnish further documents/details.

After analyzing the facts and arguments of both parties, a division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja set aside the order passed under Section 73 of the Central Goods and Services Tax Act and directed re adjudication without providing opportunity for clarifying the reply with respect to the show Cause Notice To Read the full text of the Order CLICK HER