Case: GS Exim International LLP Through Its Designated Partner Bhakti Pada Ghosh Vs Commissioner (Delhi High Court) (W.P.(C) 3300/2022
The Hon’ble Delhi high Court observed that it is not apparent from the order as to why or on what basis findings have been returned that taxpayer does not fulfil the eligibility conditions. The order is cryptic, and the reasoning is not emanating from the order and there is no specific consideration of the factual matrix or the contentions of the taxpayer. Accordingly, the order in appeal has been set aside by the court and directed the appellate authority to decide the appeal fresh and pass a speaking order.
Fact
- The taxpayer had filed an application seeking refund of GST. The Proper Officer issued a show cause notice dated 04.08.2020 proposing to reject the refund. Taxpayer, thereafter, filed a reply on 12.08.2020.
- Taxpayer also produced a copy of the reply and submitted that the same was also physically supplied to the Adjudicating Authority at the time of hearing of the show cause notice. Thereafter, the Adjudicating Authority, rejected the application by an order dated 21.08.2020, which led to the filing an appeal before the Appellate Authority.
- A perusal of the Order-in-Appeal dated 09.09.2021 shows that the order is a cryptic order and does not deal with any of the submissions made by the taxpayer. Said order, gives a brief narration of the fact, then notices the contention of the petitioner and, thereafter, extracts a Board Circular and then in the next paragraph merely holds that in view of the above legal provisions, appellant has not fulfilled the eligibility conditions for taking input tax credit.
Held
- The Appellate Authority has noted submissions of the taxpayer, however, there is no consideration of the submissions in the subsequent paragraphs and the order merely extracts the Board Circular and holds that the eligibility conditions are not complied with.
- It is not apparent from the order as to why or on what basis findings have been returned that taxpayer does not fulfil the eligibility conditions. The order is cryptic, and the reasoning is not emanating from the order and there is no specific consideration of the factual matrix or the contentions of the taxpayer in the Order-in- Appeal. Accordingly, the Order-in-Appeal cannot be sustained, and the matter calls for a remit.
- In view of the above, the Order-in-Appeal dated 09.09.2021 is set aside. The appeal is restored on the record of the Appellate Authority. The Appellate Authority shall decide the appeal afresh and pass a speaking order after giving an opportunity of personal hearing to the taxpayer.
The aforementioned ruling of Delhi high court shows the significance of speaking order and importance of due consideration to be given to the submissions made by the taxpayers by the GST authorities during the course of proceedings. By ordering a fresh hearing, the High Court upholds the principles of natural justice and ensures a just resolution for the taxpayer.