Reversal of Input Tax Credit: portal returns were ignored, orders set aside and matter remanded for fresh adjudication with hearing

Appellate authority failed to consider GST portal records (GSTR-1, GSTR-9, GSTR-3B) and thereby abdicated its duty; the appellate order is set aside for not addressing grounds based on those returns. The adjudicating authority likewise did not account for available statutory returns when passing the adjudication, so the adjudication order is set aside. The matter is remanded to the adjudicating authority for fresh decision on merits with an opportunity of hearing. Pending recovery under the impugned orders is prohibited while fresh adjudication proceeds; exclusion of time for limitation was noted as part of the procedural direction.

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Issues: Whether the appellate order dated 28th March, 2025 and the adjudication order dated 16th January, 2024 should be set aside for failure to consider the petitioners statutory return records (GSTR-3B, GSTR-9, GSTR-1) available on the GST portal and whether the matter should be remitted for fresh adjudication after affording opportunity of hearing.

Analysis: The Court examined the availability of figures and records on the GST portal (GSTR-3B, GSTR-9 and GSTR-1) which, according to the petitioner, demonstrated that the input tax credit requiring reversal had already been reversed and that the appellate authoritys order did not discuss or deal with those return figures. The Court noted that the appellate order extracts the petitioners grounds but does not address or analyse the portal data or the submissions relating thereto. The Court further observed that the adjudicating authority similarly did not consider the statutory return records while passing the adjudication order, resulting in an ex parte adjudication. Given that the material relied upon by the petitioner was available on the portal and that neither the adjudicating authority nor the Appellate Authority recorded reasons addressing that material, the Court found a failure to discharge the duty to consider relevant statutory records and to afford the petitioner an effective hearing.

Conclusion: The appellate order dated 28th March, 2025 and the adjudication order dated 16th January, 2024 are set aside for failure to consider the statutory return records and for not affording appropriate consideration and hearing; the matter is remanded to the Adjudicating Authority/Proper Officer for fresh decision on merits after affording the petitioner an opportunity of hearing and considering any written note or reply filed by the petitioner.

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