Reasoned GST demand orders are mandatory; a non-speaking Section 73 order was quashed for ignoring the reply.

A GST demand order under Section 73 of the CGST Act was found unsustainable because it did not record reasons or deal with the taxpayer's reply to the show cause notice. The order imposed tax, interest and penalty on brief assertions that the reply and documents were inadequate, but it failed to show genuine consideration of the response. Such a non-speaking order could not stand and was quashed, with liberty to the GST Officer to proceed afresh in accordance with law.

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Issues: Whether the GST demand order passed under Section 73 of the Central Goods and Services Tax Act, 2017 was sustainable when it did not record reasons or deal with the reply furnished to the show cause notice.

Analysis: The impugned order created tax, interest and penalty demands on the basis of brief assertions that the taxpayer had not properly replied or produced documents. It did not assign reasons, nor did it reflect consideration of the response submitted pursuant to the show cause notice. An order that omits such reasoning cannot be sustained.

Conclusion: The order was held unsustainable and was quashed, with liberty to the GST Officer to proceed afresh in accordance with law.

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