GST exemption claim requires fresh adjudication where supporting evidence must be examined before sustaining demand

GST demand and rectification orders were set aside where the taxpayer claimed exemption for services rendered only to Government departments under Notification No. 12/2017-Central Tax (Rate). The record showed a mismatch between auto-populated returns and filed returns, but the exemption claim required fresh examination with proper supporting documents. As the appellate authority had already allowed the appeals for the same period, the matter was remitted for fresh adjudication after giving the taxpayer an opportunity to produce proof of exemption. The rectification request under Section 161 was also noted to have been made beyond limitation.

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Issues: Whether the impugned GST demand and rectification-related orders were liable to be set aside and the matter remitted for fresh consideration on the petitioner's claim of exemption under Notification No. 12/2017-Central Tax (Rate).

Analysis: The record indicated a mismatch between the auto-populated returns and the petitioner's filed returns, while the petitioner asserted that the services were rendered only to Government departments and were exempt. As the appellate authority had already allowed the petitioner's appeals for the identical period and the petitioner was asked to produce supporting documents, the matter required reconsideration on the basis of proper proof of exemption. The rectification request under Section 161 was also noted to have been made beyond limitation.

Conclusion: The impugned orders were set aside and the matter was remitted to the respondent for fresh adjudication after granting the petitioner an opportunity to produce supporting documents.

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