Show cause notice limits in GST adjudication: an assessment beyond the notice's scope is unsustainable and set aside.

An adjudicating authority must confine its final assessment to the grounds and amount stated in the show cause notice under Section 75(7) of the CGST Act, 2017. Where the assessment order travels beyond the notice by determining a higher amount and relying on findings not put to notice, it suffers from statutory non-compliance and cannot be sustained. The Telangana High Court therefore set aside the assessment order and directed a fresh hearing, with consideration of the taxpayer's objections and a new order in accordance with law.

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Issues: Whether the assessment order could survive when it travelled beyond the allegations and amount stated in the show cause notice, in the face of Section 75(7) of the Central Goods and Services Tax Act, 2017.

Analysis: The assessment order determined a higher amount than what was proposed in the show cause notice and proceeded on findings beyond its scope. Section 75(7) requires the adjudicating authority to confine the final order to the grounds and amount put to notice. The petitioner's challenge was therefore accepted on the ground of statutory non-compliance.

Conclusion: The assessment order was unsustainable and was set aside. The authority was directed to re-hear the petitioner, consider all objections, and pass a fresh order in accordance with law.

Final Conclusion: The writ petition succeeded on the jurisdictional defect in the assessment process, and the matter was restored for fresh adjudication by the competent authority.

Ratio Decidendi: An adjudicating authority cannot confirm a demand on grounds or for an amount that exceeds the scope of the show cause notice, and any such order is liable to be set aside for breach of Section 75(7) of the Central Goods and Services Tax Act, 2017.

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