Misuse of GST credentials remitted for fresh adjudication; 10% pre-deposit required and bank attachment lifted on compliance.

Challenge to confirmation of GST demand for alleged misuse of GST credentials was remitted for fresh adjudication on merits; the HC directed that the respondent pass a fresh final order after the petitioner deposits 10% of the disputed tax from the electronic cash ledger within 30 days, outcome: fresh adjudication permitted only upon 10% pre-deposit. Conditional relief: on compliance the bank attachment shall be vacated automatically. Procedural prescription: petitioner must file a reply to the Show Cause Notice in Form GST DRC-01 treating the impugned order as an addendum; failure to comply permits the respondent to resume recovery as if the petition were dismissed.

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Issues: Whether the impugned order dated 06.09.2024 confirming the demand issued by Show Cause Notice in Form GST DRC-01 dated 09.05.2024 for the period April 2023 to December 2023 should be set aside and the matter remitted to the respondent for fresh adjudication subject to conditions including pre-deposit and vacating of bank attachment.

Analysis: The petitioner's factual assertions include non-receipt of input credits, alleged misuse of GST credentials by an engaged chartered accountant, and a reply dated 26.07.2024. The respondent relies on timing of the accountant's death and absence of supporting material. Having regard to the nature of the allegations and the need for adjudication on merits, the proceedings were directed to be treated afresh by treating the impugned order as an addendum to the Show Cause Notice, permitting the petitioner to file a substantive reply with documents, and requiring a 10% cash pre-deposit from the Petitioner's Electronic Cash Register as a condition for further consideration and for automatic vacating of bank attachment upon compliance. Time-limits for compliance and for the respondent to pass a final order were specified.

Conclusion: The impugned order is not finally sustained; the matter is remitted to the respondent to decide afresh on merits after the petitioner files a reply and deposits 10% of the disputed tax in cash within thirty days, and on compliance the bank attachment shall be vacated. Failure to comply permits the respondent to proceed as if the writ petition were dismissed in limine.

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