GST demand beyond show-cause notice and without effective hearing was unsustainable under Section 75(7).

An order confirming GST tax, interest and penalty cannot exceed the amount or grounds stated in the show-cause notice, as Section 75(7) requires strict correspondence between the notice and the final demand. Where the notice did not validly cover the full demand, including penalty and interest, and the noticee was not given an effective opportunity to respond, the demand order is unsustainable and is liable to be quashed with remand for fresh adjudication after hearing.

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Issues: Whether an order of demand under the goods and services tax law could be sustained when the amount confirmed exceeded the show-cause notice and the noticee had not been afforded an effective opportunity to respond.

Analysis: Section 75(7) of the Central Goods and Services Tax Act, 2017 mandates that the tax, interest and penalty confirmed in the order must not exceed the amount specified in the notice and that no demand can be confirmed on grounds other than those specified in the notice. The notice in the present case did not validly encompass the entire demand ultimately raised, particularly in relation to penalty and interest, and the order was passed without a proper opportunity to file a response to the show-cause notice.

Conclusion: The impugned demand order was unsustainable for breach of Section 75(7) and was quashed, with the matter remitted for a fresh order after granting opportunity of response and hearing.

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