Rsh Amit Realty Development LLP And Anr vs. The Joint Commissioner Of Revenue, Ballygunge Charge, Directorate Of Commercial Taxes And Ors.

Facts

The petitioners, RSH Amit Realty Development LLP & Anr., filed a writ petition challenging a Show Cause Notice dated July 9, 2025, and a consequential adjudication Order dated October 30, 2025, issued for the tax period April 2021 to March 2022. The petitioners argued that they had submitted a detailed reply to the Show Cause Notice, but the Adjudicating Authority passed the impugned order mechanically without considering their reply properly. They contended that the order was perverse, non-speaking, illegal, and passed without proper application of mind. The State respondents, represented by the Joint Commissioner of Revenue, Ballygunge Charge, did not seriously oppose these submissions and agreed to a remand for fresh consideration.

Held

The Court held that the impugned order dated October 30, 2025, was not a reasoned and speaking order and suffered from perversity and non-application of mind. The Court found that the petitioner had made out a case warranting interference. Consequently, the impugned order was quashed and set aside. The matter was remanded to the respondent No. 1 (The Joint Commissioner of Revenue, Ballygunge Charge) for reconsideration. The respondent No. 1 was directed to take into consideration the petitioner's reply dated August 13, 2025, pass a reasoned and speaking order within four weeks from the communication of the order, and afford an adequate opportunity of personal hearing to the petitioner. The decision was to be communicated to the petitioner within a week thereafter. The Court explicitly stated that it had not gone into the merits of the case and the respondent No. 1 should decide independently, without being influenced by the Court's observations. The petitioner was directed not to seek unnecessary adjournments.

Key Issues

1. Whether the impugned adjudication order dated October 30, 2025, passed under Section 73(9) of the Central Goods and Services Tax Act, 2017, read with the West Bengal Goods and Services Tax Act, 2017, is a reasoned and speaking order, considering the petitioner's reply to the Show Cause Notice dated July 9, 2025. Petitioner's arguments: The petitioners contended that the impugned order was passed in a cryptic and mechanical manner, failing to consider their detailed and comprehensive reply on merits. They argued that the order was perverse, non-speaking, suffered from illegality and irregularity, and was passed in excess of jurisdiction and without proper application of mind, rendering it unsustainable in law. Revenue's arguments: The State respondents, through their Senior Advocate, fairly submitted that they did not seriously oppose the petitioner's submissions and agreed that the matter could be remanded to the concerned authority for fresh consideration in accordance with law.