Show-cause notice limits govern GST adjudication; demand beyond notice scope was quashed and remanded.

An adjudication under section 75(7) of the Central Goods and Services Tax Act, 2017 cannot sustain a demand that exceeds the amount specified in the show-cause notice or rests on grounds not stated in it. The High Court found that the confirmed tax, interest and penalty travelled beyond the notice, making the order contrary to the statutory limit. The impugned order was quashed, and the matter was remanded to the adjudicating authority for fresh consideration after giving the assessee an opportunity of hearing and passing a lawful order.

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Issues: Whether the adjudication order confirming demand beyond the amount and grounds specified in the show-cause notice was sustainable under section 75(7) of the Central Goods and Services Tax Act, 2017, and whether the matter required remand for fresh consideration.

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 stated in the notice. The demand confirmed in the impugned order exceeded the notice amount, and the penalty and interest components went beyond the scope of the notice, rendering the adjudication contrary to the statutory limitation.

Conclusion: The impugned order could not be sustained. The petition was allowed, the order was quashed, and the matter was remanded to the adjudicating authority to afford the petitioner an opportunity to respond and to pass a fresh order in accordance with law.

Final Conclusion: The assessee succeeded on the ground that the demand travelled beyond the show-cause notice, and the matter was sent back for de novo adjudication after hearing.

Ratio Decidendi: An adjudication under section 75(7) of the Central Goods and Services Tax Act, 2017 cannot confirm a demand in excess of, or on grounds outside, the show-cause notice.

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