The Delhi High Court set aside the ex parte order passed against M/S Jain Cement Udyog as they did not have access to the GST Portal for show cause notice.

The Court noted that since the registration was cancelled retrospectively, taxpayer could not access the portal.

The Court was hearing a Writ Petition filed by M/S Jain Cement Udyog against the Central Board of Indirect Taxes And Customs.

The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja noted, “It is an admitted case of the Department that in case registration is cancelled retrospectively, the taxpayer cannot access the portal. Accordingly, there is merit in the contention of the petitioner that he was not served with the impugned Show Cause Notice and the impugned order which was issued after the registration was cancelled.”

Advocate R.P. Singh appeared for Petitioner and Senior Standing Counsel Anurag Ojha appeared for the Respondent.

The Petitioner, M/S Jain Cement Udyog impugned an order by which the impugned Show Cause Notice, proposing a demand of More than ₹ 7 Crore against the Petitioner was disposed of and a demand including penalty was raised against the Petitioner. The impugned order was passed under Section 73 of the Central Goods and Services Tax Act, 2017.

According to the Court, perusal of the Show Cause Notice showed that the Department had given separate headings i.e., under declaration of output tax; excess claim of Input Tax Credit and ITC claimed from cancelled dealers, return defaulters and tax non payers.

The Court noted that the impugned order recorded that a demand as ex parte was created.

The Court was of the view that the impugned order which was passed solely on account that the petitioner had not filed a reply could not be sustained.

The Court set aside the impugned order and remitted the matter to the Proper Officer for re-adjudication.

Cause Title: M/s Jain Cement Udyog v. Central Board of Indirect Taxes and Customs (Neutral Citation: 2024:DHC: 2750-DB)


Petitioner: Adv. R. P. Singh

Respondent: SSC Anurag Ojha, Adv. Subham Kumar, Adv. Rajeev Aggarwal, ASC Prateek Badhwar, Adv. Shaguftha H.

Badhwar, Adv. Samridh Vats

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