Reasoned assessment order to be passed dealing with all aspects of the matter


Quick Summary
The Gujarat High Court has quashed demand orders issued by the Revenue Department, deeming them 'non-speaking' because they failed to address all relevant aspects and the assessee's submissions. The court has ordered the Revenue Department to re-hear the case and pass a reasoned order that explicitly deals with every point raised by the assessee within three months.

Court :
Gujarat High Court

Brief :
The Hon'ble Gujarat High Court in M.P. Commodities Pvt. Ltd. v. State of Gujarat [R/Special Civil Application No. 3796 of 2022 dated March 9, 2022] quashed and set aside the demand order passed in Form DRC-07 by the Revenue Department, on the grounds of non-speaking order. Held that, all the relevant aspects of the matter were not considered and were not reflected in the orders. Further, directed the Revenue Department to ensure that a reasoned order is passed dealing with each and every submission raised by the assessee.

Citation :
R/Special Civil Application No. 3796 of 2022 dated March 9, 2022

The Hon'ble Gujarat High Court in M.P. Commodities Pvt. Ltd. v. State of Gujarat [R/Special Civil Application No. 3796 of 2022 dated March 9, 2022] quashed and set aside the demand order passed in Form DRC-07 by the Revenue Department, on the grounds of non-speaking order. Held that, all the relevant aspects of the matter were not considered and were not reflected in the orders. Further, directed the Revenue Department to ensure that a reasoned order is passed dealing with each and every submission raised by the assessee.

Facts

This writ petition has been filed by the M.P. Commodities Pvt. Ltd. ("the Petitioner") challenging the orders in Form GST-DRC-07 dated December 18, 2021 and December 21, 2021 ("the Impugned Orders") passed by the Assistant Commissioner ("the Respondent"), on the grounds that they were non- speaking orders. 

Issue

Whether the Impugned Orders are liable to be quashed on the ground of being non- speaking orders?

Held

The Hon'ble Gujarat High Court in the matter of R/Special Civil Application No. 3796 of 2022 held as under:

  • Observed that, the Impugned Orders could be termed as non- speaking orders. Further, the original record that all the relevant aspects of the matter were duly considered yet, the same is not reflected in the Impugned Orders.
  • Quashed and set aside and the Impugned Orders.
  • Remanded the matter back to the Respondent for fresh hearing of the matter.
  • Directed that, the Respondent shall hear the Petitioner once again and shall ensure that a reasoned order is passed dealing with each and every submission raised by the Petitioner and within a period of three months.
  • Permitted the Petitioner to make their oral and written submissions and question the legality and validity of the Show Cause Notices itself.
     

FAQ :

The Gujarat High Court ruled that the demand orders (Form GST-DRC-07) were non-speaking orders and therefore quashed and set them aside.

The orders were considered non-speaking because they did not reflect that all relevant aspects of the matter and the assessee's submissions had been duly considered.

The Revenue Department is directed to re-hear the matter and pass a reasoned order that deals with each and every submission made by the assessee.

The Revenue Department must pass the new reasoned order within a period of three months.

Yes, the assessee is permitted to make oral and written submissions and question the legality and validity of the original Show Cause Notices.

 



Judgement posted by

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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