M/S. Credulity Solutions Private Limited vs. Commissioner Of Delhi Goods And Services Tax & Anr.
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The petitioner, M/s. Credulity Solutions Private Limited, is challenging a final order dated July 11, 2024, passed under Section 73 of the Central Goods and Services Tax Act, 2017. This order followed a Show Cause Notice dated May 13, 2024. The petitioner had submitted detailed replies on June 13, 2024, and June 26, 2024, asserting that all tax liabilities were discharged and that action based solely on the retrospective cancellation of a supplier's registration was unsustainable. The High Court noted that none of the petitioner's contentions were addressed in the impugned final order. The respondent's counsel suggested remitting the matter for fresh adjudication.
Held
The Court held that the impugned final order dated July 11, 2024, was liable to be set aside on the short ground that it failed to notice or examine any of the contentions raised by the writ petitioner in their replies. The Court found merit in the petitioner's submission that their detailed responses were not considered. The respondent's counsel also agreed that remitting the matter for fresh adjudication would be appropriate. Consequently, the Court quashed the impugned order. The Court directed that the competent authority may proceed afresh, taking into account the petitioner's reply and affording them an opportunity for a personal hearing. All rights and contentions of the parties on merits were expressly kept open.
Key Issues
1. Whether the impugned final order dated July 11, 2024, passed under Section 73 of the Central Goods and Services Tax Act, 2017, is liable to be set aside for failing to consider the petitioner's contentions. Petitioner's Argument: The petitioner argued that the final order was unsustainable as it completely ignored the detailed replies submitted by them, which addressed all tax liabilities and the issue of retrospective cancellation of a supplier's registration. They contended that the authority failed to examine their submissions before passing the order. Revenue's Argument: The respondent, represented by Mr. Singh, conceded that the impugned order failed to address the petitioner's contentions and submitted that the ends of justice would be met by remitting the matter to the competent authority for fresh adjudication.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R
CM APPL. 60405/2024 (EXEMPTION FROM FILING CERTIFIED COPIES ETC.) Allowed, subject to all just exceptions.
The application stands disposed of.
The writ petitioner is aggrieved by the final order dated 11 July 2024 passed under Section 73 of the Central Goods and Services Tax Act, 2017 [‘Act’]. W.P.(C) 14410/2024, CM APPL. 60404/2024 (Stay)
The said final order was preceded by a Show Cause Notice [‘SCN’] dated 13 May 2024. While responding to the same, the 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 03/07/2025 at 08:56:28
petitioner had furnished detailed replies dated 13 June 2024 and 26 June 2024 and which stand placed on our record as Annexure P-6. In terms of the aforesaid, it had been duly conveyed to the respondents that all tax liabilities had been duly discharged and that the action based solely on the fact that the registration of the supplier had been cancelled with retrospective effect would not sustain.
We however note that while passing the final order which stands impugned before us, none of the contentions which were taken by the writ petitioner have been either noticed or examined.
In view of the aforesaid and on our expressing a tentative opinion that the impugned order would be liable to be set aside on this short score alone, Mr. Singh, learned counsel appearing for the respondent submitted that the ends of justice may merit the matter being remitted to the competent authority for adjudication afresh.
Accordingly, and for reasons noted hereinabove, we allow the instant writ petition and quash the impugned order dated 11 July 2024. 6. We leave it open to the competent authority to proceed in the matter afresh, bearing in mind the reply which had been submitted by the writ petitioner and after affording it an opportunity of personal hearing.
All rights and contentions of respective parties on merits are kept open.
YASHWANT VARMA, J.
RAVINDER DUDEJA, J. OCTOBER 15, 2024/RW 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 03/07/2025 at 08:56:28
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.