05 Apr Delhi High Court Invalidates Demand Order Due to Lack of Recorded Personal Hearing
The Delhi High Court recently ruled on a GST case involving Electra Power Transmission Systems and the Commissioner of Delhi Goods and Service Tax.
Facts of the Case
- The case revolved around a demand order dated 29.12.2023, which followed a Show Cause Notice from 27.09.2023, demanding a tax obligation from Electra Power Transmission Systems.
- Despite attempts to comply, the petitioner's documents were considered unsatisfactory, and they were recorded as absent for a hearing, resulting in the contested demand.
Held
- The main issue was whether the demand was justified given the petitioner's claim of appearance and attempted compliance, marred by administrative errors.
- The petitioner argued that they did attend the hearing and submitted a reply, but due to an office error, crucial documents weren't uploaded. They sought another chance to present their case fully, with all necessary documentation.
- The respondent maintained that the petitioner's response was unsatisfactory and noted their absence at the hearing, justifying the demand based on procedural defaults.
- The Delhi High Court set aside the impugned order and remitted the case for re-adjudication. The court instructed the petitioner to submit all relevant documents and be given another hearing. No comment was made on the merits of the arguments, preserving all rights.
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