Assessment Order not sustainable when reply filed by the Assessee is not taken into consideration

By: Admin
April 26, 2024
Categories: Important Pronouncements
4 Min Read

The Hon’ble Delhi High Court in the case of Aarem Tradex (P.) Ltd. v. Sales Tax Officer [W.P. (C) 2767 of 2024 dated February 23, 2024] disposed of the writ petition and remitted the matter back for reconsideration in case where the assessment order was passed by the proper officer without taking into consideration reply filed by Assessee, thereby holding that the Assessment Order is not sustainable when devoid of any proper reasoning.

Facts:

Aarem Tradex (P.) Ltd. (“the Petitioner”) filed a writ petition against order dated December 22, 2023 (“the Impugned Order”) passed by the Revenue Department (“the Respondent”) under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) wherein the demand has been raised against the Petitioner.

The Petitioner contended that due to clerical error, the Petitioner claimed Integrated GST Credit instead of CGST and SGST Credit.

Issue:

Whether Assessment Order is sustainable when reply filed by the Assessee is not taken into consideration?

Held:

The Hon’ble Delhi High Court in the case of W.P. (C) No. 2767 of 2024 held as under:

Observed that, the only reason recorded by the proper officer in the Impugned Order, no payment has been made within 30 days of notice issued and no proper reply/explanation has been received” which prima facie shows that proper officer has not even looked at the reply submitted by the petitioner.
Noted that, the proper officer was required to consider the reply on merits filed by the Petitioner and form an opinion on whether the explanation filed was sufficient or not.
Opined that, the Impugned Order is not sustainable as the Impugned Order is bereft of any proper reasoning.
Held that, the Impugned Order is set aside and matter is remitted back for reconsideration.