The Delhi High Court has directed a fresh adjudication in a case where a GST demand exceeding ₹10 crore was raised against M/S Perfetti Van Melle India Pvt Ltd without considering the company's submitted reply. The division bench, comprising Justices Prathiba M. Singh and Rajneesh Kumar Gupta, found that the adjudicating authority failed to acknowledge the assessee's response, rendering the original order unsustainable.
The case revolves around a significant tax dispute concerning the applicable GST rate on the company's confectionery products. The authorities issued a show cause notice (SCN) alleging short payment of GST and proposed a demand of ₹10,86,92,372. In response, the company submitted a detailed reply within the stipulated timeframe, contesting the allegations and providing necessary explanations.
However, the adjudicating authority proceeded to issue an Order-in-Original, stating that no reply had been filed by the assessee. This oversight prompted the company to approach the High Court, arguing that their response was duly submitted and should have been considered in the adjudication process.
The High Court, upon reviewing the case, expressed concern over the procedural lapse, emphasizing that such a substantial demand could not be sustained without considering the assessee's stand. The bench remarked, "Clearly, a substantial demand of more than ₹10 crores has been raised without considering the stand of the Petitioner despite the fact that the reply was filed well within time."
Acknowledging the failure to consider the submitted reply, the court set aside the impugned Order-in-Original and remanded the matter back to the adjudicating authority for fresh consideration. The court directed that the authority must provide a fair opportunity to the assessee to present its case and issue a new order after duly considering all submissions.
This decision underscores the importance of adhering to principles of natural justice in tax adjudication processes. It highlights the necessity for authorities to thoroughly examine and consider all responses and evidence presented by taxpayers before arriving at a conclusion. The court's directive ensures that the assessee's right to a fair hearing is upheld, and any decisions made are based on a comprehensive evaluation of all relevant materials.
The case, titled "M/S Perfetti Van Melle India Pvt Ltd Additional Commissioner (Adjn.) v. CGST Delhi North & Ors," serves as a reminder to tax authorities of the critical need for procedural diligence and fairness in the adjudication process. The High Court's intervention aims to rectify the procedural shortcomings and ensure that justice is served through a transparent and equitable process.
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