GST UPDATE

Desk of CA. Praveen Sharma Series- 519

MADRAS HIGH COURT IN THE CASE OF JP Polymers Private Limited Section 73 of the CGST Act, 2017

In these writ petitions, the petitioner challenges the original orders dated 13.03.2024 for various assessment periods, arguing that their replies were not adequately considered. The orders were issued after an inspection and subsequent show cause notices detailing eight defects. Although the petitioner submitted detailed replies for each defect, the tax proposals were confirmed without providing reasons for rejecting the replies.

Petitioner's Argument: The petitioner's counsel argued that the orders referred to their replies but confirmed the tax proposals without specifying reasons for rejection, thus calling for interference.

Respondent's Stand: The Additional Government Pleader contended that natural justice principles were followed, as the petitioner was given intimation, show cause notices, and personal hearing notices.

Court's Findings: Upon reviewing the impugned orders, it was found that while the petitioner's replies were mentioned, no reasons were provided for their rejection. For example, the order stated that the petitioner's reply regarding a tax liability discrepancy was "not in order" without discussing the provided explanation. This lack of consideration and failure to record reasons renders the orders unsustainable.

Conclusion: The impugned orders are set aside, and the matters are remanded for reconsideration. The petitioner can submit additional documents within two weeks, and the respondent must provide a reasonable opportunity for a personal hearing and issue fresh orders within three months from receiving the additional documents.

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CA. Praveen Sharma 

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