Divij Kalra Proprietor Win Win International vs. Sales Tax Officer Class Ii Avato Ward 86 Zone 9 Delhi & Anr.

Facts

The petitioner, Divij Kalra, proprietor of Win Win International, filed a writ petition challenging an order dated December 29, 2023, passed by the Goods & Services Tax (GST) officer under Section 73 of the Central Goods & Services Tax Act, 2017. This order followed a Show Cause Notice (SCN) dated September 26, 2023, to which the petitioner had submitted a reply on October 26, 2023. The impugned order stated that the petitioner's reply was found unsatisfactory and that the demand was created ex-parte based on discrepancies conveyed in the SCN, leading to the issuance of a demand (DRC-07) with applicable interest and penalty.

Held

The Court held that the GST officer's order dated December 29, 2023, was unsustainable. The Court found that the officer had failed to engage with the reply submitted by the petitioner and had not assigned any reasons for the finalization of the demand. Consequently, the Court quashed the impugned order. The Court allowed the GST Officer to pass a fresh order in accordance with the law and also directed that an opportunity of personal hearing be provided to the writ petitioner before the SCN proceedings are finalized. All rights and contentions of the respective parties on merits were kept open.

Key Issues

1. Whether the GST officer's order dated December 29, 2023, passed under Section 73 of the CGST Act, is sustainable in law, considering the petitioner's reply to the Show Cause Notice. The petitioner argued that the GST officer failed to engage with the reply submitted and did not provide any reasons for finalizing the demand in the impugned order, rendering it unsustainable. The respondent revenue authority's contentions were not recorded in the judgment.