Order Date – 12 February 2024

Parties: Paras Enterprises Through Proprietor Sulabh Gupta Vs Union of India & Ors.

Facts –

• The Petitioner, Paras Enterprises, submitted a detailed reply n show cuase notice issued by the department on 25.10.2023. However, without considering the reply and merely recording that reply was found not satisfactory, the demand was confirmed.

Issue –

• Whether the order passed without considering the replay is a cryptic order?

Order –

• The Divisional Bench of Hon’ble High Court observed that the impugned order, after recording the narration, records that the reply uploaded by the tax payer is not satisfactory. In case the Proper Officer was of the view that reply is incomplete and further details were required, the same could have been sought from the petitioner, however, the record does not reflect that any such opportunity was given to the petitioner to clarify its reply or furnish further documents/details.
• Further petitioner was not provided with an adequate opportunity to defend the show cause notice by way of a hearing. The matter is remitted to the Proper Officer for re-adjudication.