Natural justice breach in GST adjudication led to quashing of orders and remand after non-disclosure of survey report.

Orders passed under Section 74 of the GST Act could not be sustained where the adjudication was founded on a survey report that was not supplied to the affected taxpayer. Reliance on undisclosed material amounted to a prima facie breach of natural justice, as the taxpayer was denied an effective opportunity to respond. The HC quashed the impugned orders and remanded the matter to the assessing authority for fresh decision after furnishing the survey report and granting an opportunity of reply and hearing.

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Issues: Whether the orders passed under Section 74 of the GST Act could be sustained when the survey report relied upon was not supplied to the petitioner, resulting in breach of natural justice.

Analysis: The order was founded on the SIB survey report dated 13.01.2021, but that report was not furnished to the petitioner. Since the impugned orders rested on material not disclosed to the affected party, the adjudication suffered from prima facie violation of the principles of natural justice and could not be sustained.

Conclusion: The orders dated 16.01.2025 and 25.07.2025 were quashed, and the matter was remanded to the assessing authority for fresh decision after supplying the survey report and affording an opportunity of reply and hearing to the petitioner.

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