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The Delhi High Court sets aside the GST demand order due to a lack of reasoning by the assessee due to an error in claiming ITC, wherein IGST was claimed instead of CGST and SGST credit.
The Petitioner impugned an order dated 22-12-2023, where proceedings under section 73 of the Central Good and Service Tax Act 2017 concluded and a demand was created against the Petitionerš.
The Petitioner had claimed Integrated GST credit instead of CGST and SGST credit due to a bonafide clerical errorš
The Petitioner argued that the amount is still lying to their credit, and they had informed the authorities of the same in response to the Show Cause Noticeš.
The Respondentās order stated that no payment has been made within 30 days of the issue of the notice and hence, a demand was createdš .
The High Court of Delhi set aside the impugned order as it was bereft of any reasoning. The matter was remitted to the proper officer to re-adjudicate the Show Cause Notice after giving an opportunity of personal hearing to the Petitionerāļø.
Title: Aarem Tradex Pvt. Ltd. vs Sales Tax Officer
Court: Delhi High Court
Citation: W.P.(C) No. 2767 of 2024 and C.M. Appl. No. 11319 of 2024
Dated: 23-Feb-2024
This judgment emphasizes the importance of proper reasoning in tax orders and the right to a fair hearingšÆ.
ARR