In a significant case, the Delhi High Court while directing readjudication observed that it was an cryptic order passed without considering the reply for Show Cause Notice ( SCN ) regarding the Input Tax Claim.
The writ petition was filed by the petitioner Kaycee Polymers Pvt. Ltd against the cryptic order passe under Section 73 of the Central Goods and Services Tax Act, 2017
Before the division bench Rajesh Jain,counsel for the petitioner submitted that the Petitioner submits that Petitioner had filed a detailed reply dated 01.02.2024, however, the impugned order dated 30.03.2024 does not take into consideration the reply submitted by the Petitioner and is a cryptic order.
It was observed by the court that the order dated 30.03.2024 is not sustainable for the reasons that the reply dated 01.02.2024 filed by the Petitioner is a detailed reply. Although the Proper Officer had to at least consider the reply on merits and then form an opinion. He merely held that the reply is devoid of merits and without any justification, which shows that the Proper Officer has not applied his mind to the reply submitted by the petitioner.
Further 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 held that Petitioner shall file a reply to the Show Cause Notice within a period of 30 days from today. Thereafter, the Proper Officer shall re adjudicate the Show Cause Notice after giving an opportunity of personal hearing and shall pass a fresh speaking order in accordance with law within the period prescribed under Section 75 (3) of the Central Goods and Services Tax Act.
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