GST demand cannot rest solely on survey material without an independent reasoned finding on taxpayer liability.

GST demand proceedings under Section 73 of the Uttar Pradesh GST Act cannot be sustained when the proper officer and appellate authority rely only on income tax survey material without recording an independent, reasoned finding on liability. The petitioner's objection that the proprietorship PAN differed from the partnership firm PAN linked to the survey material was not separately examined, and no speaking determination was made on that factual distinction. The impugned orders were quashed and the matter was remanded for fresh de novo consideration after hearing all stakeholders.

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Issues: Whether proceedings under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 could be sustained when the proper officer and the appellate authority did not record an independent finding and the orders were based only on the income tax survey material.

Analysis: The business of the petitioner had been closed from the stated date, and the record did not show that the PAN used for the proprietorship registration was the same PAN used for the partnership firm from which the income tax survey material arose. The objection on this factual distinction was placed before the authority, but no independent examination or finding was recorded. The impugned orders rested on the survey findings alone, without a separate reasoned determination by the GST authorities.

Conclusion: The impugned orders could not be sustained and were quashed; the matter was remanded for fresh consideration by de novo proceedings through a reasoned and speaking order after hearing all stakeholders.

Ratio Decidendi: A GST demand order cannot be sustained where it is founded only on external survey material without an independent, reasoned finding by the proper officer on the taxpayer's liability.

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