Introduction

In recent legal developments, the assessment process under taxation laws has come under scrutiny, particularly concerning the significance of considering the replies submitted by assesses. The case of Aarem Tradex (P.) Ltd. v. Sales Tax Officer highlights the pivotal role of assessees’ responses in assessment orders. This article delves into the details of the case, examining the facts, issues, and the court’s ruling.

Facts of the case

The case revolves around Aarem Tradex (P.) Ltd. (“the Petitioner”), who filed a writ petition against an order dated December 22, 2023 (“the Impugned Order”) issued by the Revenue Department (“the Respondent”) under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). The Impugned Order raised a demand against the Petitioner. The crux of the matter lies in the Petitioner’s contention that a clerical error led to the claim of Integrated GST Credit instead of CGST and SGST Credit.

Issue

The central issue in question is whether an assessment order can be deemed sustainable when the reply filed by the Assessee is not duly considered.

Held

The Hon’ble Delhi High Court, in the case of W.P. (C) No. 2767 of 2024, provided a decisive ruling:

Observations