Shade Capital Private Limited vs. Commissioner Delhi GST & Anr.

W.P.(C)/13024/2024HC DelhiGSTCNR DLHC01061473202417 September 2024Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE SACHIN DATTA2 pages

For Petitioner: Mr. Arif Ahmed Khan, Mr. Amit Sharma, Ms. Saira Tagme, Mr. Afroz Amhed Khan and Mr. Manoj Awasthi, AdvsFor Respondent: Mr. Avishkar Singhvi, Advocate along with Mr. Naved Ahmad, Mr. Vivek Kumar Singh and Mr. Shubham Kumar, Advocates for GNCTD

AI SummaryRemanded

Facts

The petitioner, Shade Capital Private Limited, filed a writ petition before the Delhi High Court challenging an order dated 15.12.2023. This order was passed under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) and the Delhi Goods and Services Tax Act, 2017 (DGST Act). The petitioner contended that the impugned order was unreasoned and failed to consider the reply they had submitted. The respondents, Commissioner Delhi GST & Anr., accepted notice and, on instructions, agreed to the setting aside of the impugned order and its remand for fresh consideration.

Held

The Court held that the impugned order dated 15.12.2023, passed under Section 73 of the CGST Act/DGST Act, was unreasoned and did not adequately consider the petitioner's reply. The Court accepted the respondents' submission that the order should be set aside and the matter remanded. The reasoning was based on the petitioner's assertion of non-consideration of their reply and the respondents' concession. The ratio decidendi is that an adjudicating authority must pass a reasoned order and consider all submissions made by the assessee. The Court set aside the impugned order and remanded the matter to the adjudicating authority for a fresh decision after affording the petitioner an opportunity to be heard. The adjudicating authority was directed to pass a fresh order expeditiously, preferably within six months.

Key Issues

1. Whether the impugned order dated 15.12.2023, passed under Section 73 of the CGST Act/DGST Act, is unreasoned and fails to consider the petitioner's reply, thus violating principles of natural justice? Petitioner's contention: The petitioner argued that the order was unreasoned and did not address their submitted reply, making it liable to be set aside. Respondents' contention: The respondents, on instructions, conceded that the impugned order should be set aside and the matter remanded for a fresh decision. They did not present any arguments against the petitioner's claim of the order being unreasoned.

Sections Cited

Section 73

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

$~90 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 13024/2024 CM APPL. 54356/2024 CM APPL. 54357/2024 SHADE CAPITAL PRIVATE LIMITED .....Petitioner Through: Mr. Arif Ahmed Khan, Mr. Amit Sharma, Ms. Saira Tagme, Mr. Afroz Amhed Khan and Mr. Manoj Awasthi, Advs. versus COMMISSIONER DELHI GST & ANR. .....Respondents Through: Mr. Avishkar Singhvi, Advocate along with Mr. Naved Ahmad, Mr. Vivek Kumar Singh and Mr. Shubham Kumar, Advocates for GNCTD. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE SACHIN DATTA

O R D E R %

17.09.

2024

Issue notice.

Learned counsel for the respondents accepts notice.

The petitioner has filed the present petition impugning an order dated 15.12.2023, passed under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act)/Delhi Goods and Services Tax Act, 2017 (DGST Act). The petitioner submits that the said impugned order is unreasoned as it fails to consider the reply filed by the petitioner.

Learned counsel appearing for the respondents, on advance notice, submits, on instructions, that the impugned order

The judgment continues below.

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