Sesame Workshop Initiatives (INDIA) Private Limited vs. Government Of Nct Of Delhi & Anr.
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The petitioner, Sesame Workshop Initiatives (India) Private Limited, is challenging a final order dated August 29, 2024, passed by the second respondent. This order was issued under Section 73 of the Delhi Goods and Services Tax Act, 2017, read with the Central Goods and Services Tax Act, 2017. The proceedings were initiated by a Show Cause Notice (SCN) alleging incorrect declaration of tax liability in annual returns. The petitioner filed detailed replies to the SCN on July 8, 2024, and August 5, 2024. However, the final order stated that since no payments were made within thirty days of the SCN's issuance, the demand was finalized. The petitioner contends that the authority failed to consider their submitted replies.
Held
The Court held that the impugned final order dated August 29, 2024, was unsustainable. The primary reason for this finding was that the order failed to either advert to or consider the detailed replies submitted by the writ petitioner on July 8, 2024, and August 5, 2024. The Court found this omission to be a fatal flaw, rendering the order unsustainable on this ground alone. The respondents, represented by their counsel, acknowledged this deficiency and agreed that the matter should be adjudicated afresh. Accordingly, the Court quashed the impugned final order. The respondents were granted liberty to finalize the SCN proceedings anew, taking into account the petitioner's submitted replies and the observations made by the Court. The Court also directed that the respondents shall provide an opportunity of hearing to the writ petitioner. All rights and contentions of the respective parties on merits were expressly kept open.
Key Issues
1. Whether the final order dated August 29, 2024, passed by the second respondent under Section 73 of the Delhi Goods and Services Tax Act, 2017, is sustainable in law, considering it failed to advert to or consider the detailed replies filed by the petitioner on July 8, 2024, and August 5, 2024? Petitioner's Contention: The petitioner argued that the impugned order is unsustainable as it completely disregarded the detailed replies submitted by them, rendering the adjudication process flawed. They relied on the principle that authorities must consider all submissions made by the assessee before passing an order. Revenue's Contention: The respondents, through their counsel, conceded that the impugned order was unsustainable. They submitted that instead of the matter being retained by the High Court, the ends of justice would be met by setting aside the final order and allowing the respondents to adjudicate the SCN proceedings afresh, reserving their rights.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2024 CM APPL. 64780/2024 (for exemption) Allowed, subject to all just exceptions. This application stands disposed of. CM APPL. 64779/2024 (lengthy synopsis and list of dates) Allowed, subject to all just exceptions. This application stands disposed of. W.P.(C) 15434/2024 & CM APPL. 64778/2024 (stay)
The writ petitioner is aggrieved by the final order dated 29 August 2024 passed by the second respondent in purported exercise of powers conferred by Section 73 of the Delhi Goods and Services Tax Act, 2017 read with the Central Goods and Services Tax Act, 2017. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/11/2024 at 12:27:02
The proceedings themselves had commenced consequent to the issuance of a Show Cause Notice [‘SCN’], which had alleged that the petitioner had failed to correctly declare its tax liability while filing its annual returns.
We note from the record that detailed replies were thereafter filed by the writ petitioners on 08 July 2024 and 05 August 2024. However, while passing the final order, all that the authority has chosen to record is that since no payments have been made within thirty days of the issuance of the SCN, the demand was liable to be finalised.
As we view the order impugned before us, it is manifest that it fails to either advert to or consider the replies which had been submitted by the writ petitioner. The order is thus rendered unsustainable on this short score alone.
Faced with the aforesaid tentative conclusions which were expressed, Mr. Aggarwal, learned counsel appearing for the respondents submitted that rather than the matter being retained on the board of this Court, the ends of justice would merit the impugned final order being set aside subject to rights being reserved for the respondents to adjudicate the SCN proceedings afresh.
We accordingly allow the instant writ petition and quash the impugned final order dated 29 August 2024. We leave it open to the respondents to finalise the SCN proceedings afresh bearing in mind the replies submitted by the writ petitioner and the observations appearing hereinabove.
All rights and contentions of respective parties on merits are kept open. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/11/2024 at 12:27:02
The respondents shall also accord an opportunity of hearing to the writ petitioner. YASHWANT VARMA, J. RAVINDER DUDEJA, J. NOVEMBER 6, 2024/vp This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 18/11/2024 at 12:27:02
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.