HC Quashes non-speaking orders under GST in Form GST-DRC-07

Facts and issue of the case

The matter is taken up for final disposal with the consent of the learned counsel appearing for the parties.By this writ application under Article 226 of the Constitution of India, the writ applicants have prayed for the following reliefs:

That Your Lordships may be pleased to issue a Writ of Certiorari, or any other appropriate writ, order or direction quashing and setting aside Orders in Form GST-DRC-07 dated 18.12.2021 and 27.12.2021 (Annexure – “F”) passed by the Assistant Commissioner of State Tax. Division-3. Gandhinagar, the second respondent herein with a direction to him to consider and decide the Petitioner’s submissions by verifying the documentary and other evidence, and to decide the issue involved in this case in accordance with law;

That Your Lordships may be pleased to issue a Writ of Certiorari, or a Writ of Mandamus, or any other appropriate writ, order or direction quashing and setting aside the two Show Cause Notices both dated 21.10.2019, in Form GST DRC-01 (Annexure-“C”) with a direction to issue in accordance with law proper show cause notices with clear/explicit reasons and grounds for the proposals therein against the Petitioners:

Pending hearing and final disposal of the present petition, Your Lordships may be pleased to stay implementation and execution of Orders in Form GST-DRC-07 dated 18.12.2021 and 27.12.2021 (Annexure-“F”) passed by the Assistant Commissioner of State Tax, Division-3, Gandhinagar, thereby staying any coercive measures of recovery against the Petitioners pursuant to this adjudication orders dated 18.12.2021 and 27.12.2021 made by the 2nd Respondent herein:

An ex-parte ad-interim relief in terms of Para 18(C) above may kindly be granted:

Any other further relief that may be deemed fit in the facts and circumstances of the case may also please be granted.

Court need not delve much into the facts giving rise to this litigation as this writ application can be disposed of on a short ground.

Observation of the case

Court has heard Mr. P.M. Dave, the learned counsel appearing with Mr. A.S. Tripathi, the learned counsel for the writ applicants and Mr. Utkarsh Sharma, the learned AGP appearing for the respondents.

Mr. Sharma, the learned AGP very fairly submitted that both the impugned assessment orders could be termed as non- speaking orders. Although, Mr. Sharma, tried to point out from the original record that all the relevant aspects of the matter were duly considered yet, Mr. Sharma, fairly submitted that the same is not reflected in the impugned orders.

Court disposes of this writ application by quashing and setting aside the orders in Form GST-DRC – 07 dated 18.12.2021 and 27.12.2021 respectively (Annexure – F), passed by the Assistant Commissioner of State Taxes, Division– 3, Gandhinagar, and remit the matter to the Assistant Commissioner of State Tax, Division – 3, Gandhinagar, for fresh hearing of the matter. The impugned orders are accordingly quashed and set aside.

The Assistant Commissioner of State Tax, Division – 3, Gandhinagar, shall hear the writ applicants once again. This time, the Assistant Commissioner of State Tax, Division – 3, Gandhinagar, shall ensure that a reasoned order is passed dealing with each and every submission that may be raised on behalf of the writ applicants.

Let this entire exercise be undertaken at the earliest and completed within a period of three months from today. We also permit the writ applicants to make their oral submissions and also file submissions in writing. It shall be open for the writ applicants to even question the legality and validity of the show cause notices itself.