M/S Degraphics Advertising And Marketing vs. Union Of INDIA And Others
Facts
The petitioner, M/s Degraphics Advertising & Marketing, received a show cause notice dated 29.11.2024 under Section 73 of the Union Territory Goods and Services Tax Act, 2017/Central Goods and Services Tax Act, 2017, for the financial year 2020-21. The petitioner submitted a written response to this notice. However, the final adjudication order dated 19.02.2025 was passed without considering the petitioner's response. The petitioner filed a writ petition before the High Court of Punjab and Haryana at Chandigarh challenging this adjudication order.
Held
The Court held that the adjudication order dated 19.02.2025 was passed without any application of mind because the petitioner's written response to the show cause notice, issued under Section 73 of the CGST/UTGST Act, 2017, for the financial year 2020-21, was completely ignored. The Court found no hesitation in setting aside the impugned order on this ground. The ratio decidendi is that an adjudication order must reflect due consideration of the assessee's submissions. The Court set aside the adjudication order dated 19.02.2025 (Annexure P-9) and granted liberty to the respondents to proceed afresh against the petitioner in accordance with law. No other issue was expressly left undecided.
Key Issues
1. Whether the adjudication order dated 19.02.2025 is liable to be set aside for being passed without application of mind, given that the petitioner's written response to the show cause notice was ignored? (Question of law and fact, turning on Section 73 of the CGST/UTGST Act, 2017). Petitioner's Contention: The petitioner argued that the adjudication order was passed without considering their response to the show cause notice, rendering it non-application of mind and thus invalid. Respondents' Contention: The judgment records no specific argument from the respondents regarding the petitioner's contention. However, the court's decision implies that the respondents did not successfully counter the petitioner's claim that their response was ignored.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
CWP-12874-2026 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Sr. No.162 CWP-12874-2026 Date of decision: 30.04.2026 M/s Degraphics Advertising & Marketing ....Petitioner Versus Union of India and others ....Respondents CORAM: HON'BLE MR. JUSTICE DEEPAK SIBAL HON'BLE MS. JUSTICE LAPITA BANERJI Present: Mr. Sandeep Goyal, Senior Advocate with Ms. Aanchal Goyal, Advocate for the petitioner. Mr. Ajay Jagga, Addl. Standing Counsel with Ms. Neetu Kundu, Advocate for the respondents. * * * DEEPAK SIBAL, J. (Oral)
It is not disputed that to the show cause notice dated 29.11.2024 issued to the petitioner under Section 73 of the Union Territory Goods and Services Tax Act, 2017/Central Goods and Services Tax Act, 2017, pertaining to the financial year 2020-21, the petitioner had filed a written response which has altogether been ignored at time of passing of the final adjudication order dated 19.02.2025 (Annexure P-9).
In the light of the above, we have no hesitation to hold that the impugned adjudication order dated 19.02.2025 (Annexure P-9) has been passed without any application of mind and therefore, we order it to be set aside. However, liberty is granted to
The judgment continues below.
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