Disposed

M/S Nk Engineering Works v. Sales Tax Offer Class-Ii/Avato

Delhi HC5 May 2025W.P.(C)/5896/2025

Case brief

AI extract

What is this about?

GST demand order challenged for lack of adequate opportunity to reply to show cause notice. Court, citing proprietor's husband's death during COVID-19, set aside the order and permitted a detailed reply with personal hearing and fresh reasoned order by the Adjudicating Authority.

What did the court decide?

Impugned order set aside; liberty to file reply by 15.06.2025 with personal hearing and fresh reasoned order.

M/S Nk Engineering Works Vs Sales Tax Offer Class-Ii/Avato — GST and Indirect Tax | Delhi HC (2025)

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$~193

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- W.P.(C) 5896/2025

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M/S NK ENGINEERING WORKS .....Petitioner

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Through: Ms. Divya Pulani, Mr. Varun Katiyar, Mr. Yogesh Shukla , Mr. Rajvardhan Singh and Ms. Anju Rani, Advs.

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versus

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SALES TAX OFFER CLASS-II/AVATO, .....Respondent Through: Ms. Urvi Mohan, Adv. for GNCTD.

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CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE RAJNEESH KUMAR GUPTA O R D E R % 05.05.2025

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This hearing has been done through hybrid mode.

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The present petition has been filed by the Petitioner under Article 226 of the Constitution of India inter alia, challenging the impugned order dated 16^th August, 2024 (hereinafter ‘impugned order’ ) passed by the Respondent under Section 73 of the Central Goods And Services Tax Act, 2017 (hereinafter ‘CGST Act’ ). Vide the impugned order demands to the tune of Rs. 52,89,575/- has been raised against the Petitioner. The allegations relate to certain reconciliation in the returns filed by the Petitioner for the period April, 2019 to March, 2020.

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It is submitted on behalf of the Petitioner that though the Petitioner – Mrs. Harshana Gulati is the proprietor, the business was being run by her husband on a daily basis and he had passed away on 23^rd June, 2021.

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The Show Cause Notice was received in respect of the period 2019-

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This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:16:32

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2020 in 2024 and some time was needed for reconciling the records. Accordingly, a communication was issued by the Petitioner on 18^th June, 2024 seeking further time to file a reply. The same was not granted and the impugned order dated 16^th August, 2024 has been passed.

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In the extenuating circumstances which have been explained in the writ as the Petitioner’s husband appears to have passed away during COVID-19, this Court is of the opinion that some time can be granted to the Petitioner to place a detailed reply on merits to the Show Cause Notice.

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Accordingly, the impugned order is set aside. The Petitioner is granted the liberty to file a reply by 15^th June, 2025.

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A personal hearing shall be granted to the Petitioner and the notice for the same shall be sent on the following email addresses:

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[email protected]

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[email protected]

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After hearing the Petitioner, a fresh reasoned order considering the stand of the Petitioner shall be passed by the Adjudicating Authority.

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All rights and remedies of the Petitioner in respect of the Adjudicating Authority’s order are left open.

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Petition is disposed of in these terms. All pending applications, if any, are also disposed of.

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PRATHIBA M. SINGH, J.

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RAJNEESH KUMAR GUPTA, J.

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MAY 5, 2025 Rahul/Ar.

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M/S Nk Engineering Works v. Sales Tax Offer Class-Ii/Avato

Case brief

What is this about?

What did the court decide?

M/S Nk Engineering Works v. Sales Tax Offer Class-Ii/Avato

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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