Section 73/74 of the CGST Act, 2017—Order —– The petitioners challenged SCNs dated 07.02.2020 and consequential orders dated 22.04.2020. Replies to the SCNs were filed, wherein it was mentioned that the petitioner company became sick. Accordingly, Corporate Insolvency Resolution Process (CIRP) was initiated under the Insolvency and Bankruptcy Code, 2016. The court observed that the Law is well-settled that with the finalization of insolvency resolution plan and the approval thereof by the NCLT, all dues of creditors, Corporate, Statutory and others stand extinguished and no demand can be raised for the period prior to the specified date. The Deputy Commissioner, State GST Department exercised quasi judicial functions and thus, it is expected from such officer to act judiciously, consider the reply of the party, apply mind to the facts and law and pass a reasoned order. A bare perusal of the impugned orders dated 22.04.2020 is sufficient to satisfy that the officer acted in gross defiance of the settled legal position as expounded by Hon'ble Supreme Court in the case of Committee of Creditors of Essar Steel India Ltd. and this Court in the case of Ultra Tech Nathdwara Cement Ltd. Such laconic approach of the authority exercising quasi judicial powers reflects sheer incompetency and pedantic approach and adds to the evergrowing dockets of cases in the courts. While passing the impugned orders, the Deputy Commissioner failed to consider the replies of the party and acted with sheer non-application of mind. His conduct deserves to be deprecated.

Held that:- The Hon’ble High Court set aside the impugned orders dated 22.04.2020 and demand notices dated 23.04.2020. A copy of this order shall be placed before the Commissioner, State Goods and Service Tax, Kar Bhawan, Jaipur for information and appropriate action.