Oswal Agencies Pvt Ltd. Vs Union of India & Ors
Date: February 11, 2024
Subject Matter
ITC inadvertently mentioned in column: Matter remanded for reconsideration
Summary
The case titled "Oswal Agencies Pvt Ltd. Vs Union of India & Ors." involved a dispute arising from a Show Cause Notice issued to the petitioner, leading to the creation of a demand against them under Section 73 of the CGST Act. The petitioner responded to the notice, clarifying an error in the submission of details of Impugned Tax Credit. However, the subsequent order failed to take the petitioner's reply into account and was deemed to be insufficiently reasoned by the Delhi High Court. As a result, the court set aside the impugned order, directing the proper officer to reconsider the matter and issue a fresh speaking order, taking into account the petitioner's response and granting a personal hearing. Importantly, the court clarified that its decision did not reflect any opinion on the merits of the case, preserving the rights of the parties to present their arguments in subsequent proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Petitioner impugns order dated 05.12.2023, whereby an order under Section 73 of this Central Goods and Services Tax Act, 2017 has been passed and demand is created against the petitioner. It is noticed that a Show Cause Notice dated 28.09.2023 was issued to the petitioner which was replied by the petitioner on 25.10.2023.
2. Perusal of the impugned order shows that the impugned order records that no proper reply has been submitted and the reply stated to be improper was not found to be satisfactory. We note that the order is cryptic order without any reasons and without taking into account the reply filed by the petitioner.
3. The case of the petitioner is that on account of an error, details of Impugned Tax Credit were inadvertently mentioned in column IV (A) (3) instead of column IV (A) (5). None of the averments of the petitioner have been taken into account while passing the impugned order dated 12.2023. Accordingly, we are of the view that said order cannot be sustained and the matter calls for a remit.
4. In view of the above, the impugned order dated 05.12.2023 is set aside. The matter is remitted to the proper officer to pass a fresh speaking order taking into account the reply filed by the petitioner. An opportunity of personal hearing shall also be granted to the petitioner. It is clarified that this Court has neither considered, nor commented upon the merits of the contention of either party. All rights and contentions of the parties are reserved.
5. Petition is disposed of in the above terms.