GST adjudication cannot exceed the show-cause notice or rely on new grounds under section 75(7).

Section 75(7) of the GST Act limits adjudication to the tax, interest and penalty set out in the show-cause notice and prohibits confirmation of demand on grounds not stated in that notice. The article notes that where an adjudication order exceeds the notice amount and relies on new grounds, it is contrary to this statutory restriction and cannot stand. The impugned demand order was therefore quashed, and the matter was remitted for fresh adjudication after opportunity of response and hearing.

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Issues: Whether an adjudication order raising tax, interest and penalty in excess of the amounts specified in the show-cause notice, and confirming demand on grounds beyond the notice, is sustainable under section 75(7) of the Goods and Services Tax Act, 2017.

Analysis: Section 75(7) mandates that the amount of tax, interest and penalty demanded in the order shall not exceed the amount specified in the notice and that no demand shall be confirmed on grounds other than those specified in the notice. The show-cause notice in the present matter disclosed a much lower composite amount, whereas the impugned order raised the demand far beyond the notice amount. Such enhancement was held to be contrary to the statutory limitation under section 75(7).

Conclusion: The impugned demand order was unsustainable in law and was quashed, with the matter sent back for fresh adjudication after affording opportunity of response and hearing.

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