Скачать или смотреть GST Assessment Setback: High Court Voids Section 74 Order Due to Failure to Consider Submissions

In this episode, we delve into a significant GST case from the High Court of Andhra Pradesh involving Sodex India Services Private Limited (Petitioner) and The Union of India (Respondent). The case revolves around a challenge to an order issued under Section 74 of the CGST Act, 2017.
The core of the Petitioner's contention was the alleged failure of the Adjudicating Authority to duly consider the submissions made. The Petitioner asserted that the Section 74 notice was issued without furnishing any evidence of fraud, misstatement, or suppression of facts. Furthermore, the Petitioner argued that the Authority erroneously treated their all-India turnover as turnover specific to Andhra Pradesh and disregarded endorsements related to SEZ authorizations, which were critical to the assessment.
The High Court reviewed the matter and disposed of the Writ Petition, significantly, by setting aside the impugned order. The Court held that the Adjudicating Authority had indeed failed to consider the submissions made by the Petitioner. Consequently, the matter has been remanded back to the Adjudicating Authority. The Authority is now directed to pass a fresh order after affording the Petitioner an opportunity for a personal hearing and is also required to examine whether the penal provisions under Section 74 are invocable in the specific facts and circumstances of the case. The Court also clarified that the period from the date of the set aside order to the date of the Court's order shall be excluded for the purpose of limitation.
This case underscores the critical importance of due process and the necessity for Adjudicating Authorities to properly consider submissions made by taxpayers under GST law. As noted by CMA Robin Singh, it emphasizes the need for a fair assessment, particularly concerning issues like turnover treatment and the relevance of SEZ authorizations. For tax professionals and their clients, it highlights the significance of meticulously documenting all submissions and ensuring that assessment orders are reasoned and demonstrate consideration of all facts, reinforcing the principles of natural justice in tax proceedings.

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