Speaking order requirement under GST violated as cryptic tax adjudication orders were quashed for non-consideration of reply and hearing.

Orders passed under Section 73 of the CGST Act were set aside because they were cryptic, internally inconsistent on whether a personal hearing had been given, and failed to consider the taxpayer's reply, including the objection that input tax credit was only carried forward and not utilised in the same year. The absence of any reasoned response to these material contentions showed non-application of mind and breach of the requirement of a speaking order. The matter was remitted for fresh adjudication of the show cause notices after consideration of the reply and after granting a personal hearing.

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Issues: Whether the impugned orders passed under Section 73 of the Central Goods and Services Tax Act, 2017 were sustainable despite being cryptic and allegedly ignoring the reply and contentions of the petitioner, and whether they were liable to be quashed with a direction for fresh adjudication.

Analysis: The orders were found to be internally inconsistent, in some instances referring to personal hearing and in others recording that no hearing was availed, and they did not reflect consideration of the petitioner's reply or the specific objection that input tax credit had only been carried forward and not utilised in the same year. The absence of a reasoned response to the material contentions showed complete non-application of mind and did not satisfy the requirement of a speaking order.

Conclusion: The impugned orders were quashed and the Proper Officer was directed to re-adjudicate the show cause notices after considering the petitioner's reply and contentions and after granting an opportunity of personal hearing.

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