Independent tax determination under Section 73 of the CGST Act required; deferred demand confirmation was set aside and remanded.

An assessment order under Section 73 of the CGST Act was unsustainable because the Proper Officer had not independently determined tax under Section 73(9) and instead treated the demand as confirmed subject to communication from another State GST department. The High Court held that the Telangana Proper Officer, as an independent statutory authority, could not defer statutory determination in that manner. The order was set aside and the matter remanded to the Proper Officer for fresh adjudication, with all contentions kept open.

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Issues: Whether the assessment order passed under Section 73 of the Central Goods and Services Tax Act, 2017 was sustainable when the tax was not determined under Section 73(9) and the demand was confirmed subject to communication from another State GST department.

Analysis: The impugned order proceeded on the basis that the demand would stand confirmed subject to receipt of communication from the Maharashtra State GST department. The statutory scheme under Section 73(9) required the Proper Officer to determine the tax. The Telangana Proper Officer was an independent statutory authority and could not defer determination in the manner adopted in the impugned order. In view of the concession made on behalf of the State and to enable a fresh decision, the matter was sent back to the Proper Officer, with all contentions kept open.

Conclusion: The order was held unsustainable and was set aside. The matter was remanded for fresh adjudication.

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