GST Demand Order Invalidated Due to Procedural Defects, Tax Authority Ordered to Reassess with Proper Guidelines

HC found the GST demand order against the petitioner was cryptic and procedurally flawed. The court set aside the order, directing the tax authority to re-adjudicate the Show Cause Notice. The petitioner was given 30 days to file a detailed reply, with the tax officer required to pass a fresh order following statutory guidelines, while reserving all substantive rights of both parties.

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Issues involved: Impugning an order u/s 73 of the Central Goods and Services Tax Act, 2017 regarding a demand raised against the petitioner based on a Show Cause Notice.

Summary:
The petitioner challenged an order dated 19.12.2023 which disposed of a Show Cause Notice proposing a demand of Rs. 15,19,68,460.00 against the petitioner u/s 73 of the Act. The petitioner sought additional time for reply and personal hearing, but the impugned order did not consider these requests, leading to a cryptic order creating an ex-parte demand. The Proper Officer noted that despite opportunities, the petitioner did not provide explanations or attend the personal hearing.

The petitioner argued that despite seeking adjournments for personal hearings, they were not granted as per Section 75(5) of the Act. However, the respondent contended that the petitioner failed to file a detailed reply or appear in person despite opportunities given.

The Court observed that the order was cryptic and set it aside, remitting the Show Cause Notice for re-adjudication. The petitioner was directed to file a reply within 30 days, after which the Proper Officer would re-adjudicate the matter and pass a fresh order in accordance with the law within the prescribed period u/s 75(3) of the Act. The Court clarified that it did not consider the merits of the contentions, and all rights and contentions of the parties were reserved.

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