GST demand set aside where defence evidence was ignored and the appellate authority failed to address the taxpayer's objection.

GST assessment and appellate orders were held unsustainable where the assessee produced tax invoices, e-way bills, bank statements and related records indicating outward supply and tax payment, but those materials were not verified before the demand and penalty were affirmed. The appellate authority also failed to deal with the assessee's specific objection to the basis of the demand and merely repeated the allegation of inward supply from a non-existing dealer. The writ petitions were allowed and the impugned orders were set aside.

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Issues: Whether the orders passed under section 73 of the GST regime could be sustained when the assessee produced documentary evidence showing outward supply and deposit of tax, and whether the appellate order was vitiated for not dealing with the assessee's specific objection.

Analysis: Proceedings were initiated on the premise that the assessee had taken inward supply from a non-existing dealer. The record, however, contained tax invoice, e-way bill, bank statement and related documents indicating outward supply, and tax payment thereon. The appellate authority noticed the assessee's objection but did not return any finding on it and merely reiterated the allegation of inward supply. The material placed by the assessee was not verified before affirming the demand and penalty.

Conclusion: The assessment and appellate orders were unsustainable and were quashed. The issue was decided in favour of the assessee.

Final Conclusion: The writ petitions were allowed and the impugned orders were set aside.

Ratio Decidendi: An order under the GST law cannot be sustained where material defence evidence is ignored and the appellate authority fails to deal with the specific objection raised against the very basis of the demand.

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