GST demand order under challenge for ignoring auction purchase explanation and possible double taxation; interim protection granted.

A GST demand order issued in Form GST DRC-07 was challenged for allegedly lacking reasons and for not addressing the explanation that imported goods were bought in public auction after IGST and cess had already been paid, creating a risk of double taxation. The petition also sought interim protection pending examination of the demand. No final adjudication was made on the validity of the order, but the court directed notice and restrained coercive action until further hearing.

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Issues: Whether the impugned GST demand order could be sustained without dealing with the petitioner's explanation regarding purchase of imported goods in public auction and the alleged overlap of tax paid at the earlier stage, and whether interim protection was warranted pending consideration of the petition.

Analysis: The petition challenged a Form GST DRC-07 order on the ground that it was passed without assigning reasons and without considering the explanation that the goods had been purchased in auction after import, with IGST and cess already paid, and that the tax discrepancy would amount to double taxation. At the stage of admission, the matter was directed to be noticed for further hearing, and the respondents were restrained from taking coercive action during pendency.

Outcome: No final adjudication was rendered on the challenge to the demand order, and interim protection against coercive steps was granted pending further consideration.

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