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1. Demand order passed without giving
opportunity of being heard is liable
to be set aside

3. Brief Facts of the case
• The Petitioner (Ocean Sparkle Limited) has received the
Assessment Order (Ref. No. ZD370321001535W dated 17th
March, 2021) from Assessing Authority (“The
Respondent”) regarding the Tax demand and the penalty
for the period of July 2017 to March 2018.
• The Respondent issued a show cause notice to the
petitioner under section 73 of CGST Act, 2017 read with
Rule 142(1) of CGST Rules, 2017 on 20th January, 2021.
• However, the petitioner failed to respond to such Show
Cause Notice. However, written objections were filed on
18th March, 2021.
• The Petitioner contended that such demand order is
liable to be set aside on the ground of non-compliance
of mandatory provisions of Section 75(4) of CGST Act
2017.

4. Relevant Legal Extract
• Chapter XV of CGST Act, 2017 deals with “Demand &
Recovery”.
• Section 73 deals with “Determination of tax not paid or
short paid or erroneously refunded o/r input tax credit
wrongly availed or utilized for any reason other than
fraud or any willful misstatement or suppression of
facts”.
• Section 74 deals with “Determination of tax not paid or
short paid or erroneously refunded or input tax credit
wrongly availed or utilized for any reason other than
fraud or any willful misstatement or suppression of
facts”.
• Section 75 deals with “General provisions relating to
determination of tax”.
• Section 75 (4) is relevant for the matter under
discussion and relevant extract of which reiterated
below for ready references

5. Contentions of the Petitioner
• The Petitioner contended following points:
• The petitioner could not file an objection to
the show cause notice within the stipulated
time period due to various reasons.
• However, a written objection was filed on 18th
March, 2021.
• The Respondent have not followed the mandatory
provisions of GST law. Therefore, impugned
order is liable to be set aside

6. Contentions of Respondent
• The Respondent contended that:
• The petitioner has failed to file response to show
cause notice dated 20th January, 2021. Therefore,
now it is not open for the petitioner to raise any
objection against impugned order.
• The respondent has passed the impugned order only
after granting the full fledged opportunity to the
petitioner.
• Further, in case of any objection, the petitioner
has alternate remedy available under Section 107
of CGST Act to file an appeal before Appellate
Authority. Therefore, writ petitioner before
Hon’ble High Court is not maintainable.