Non-speaking adjudication in GST show-cause proceedings: remand for fresh hearing after failure to apply mind and record reasons

Non-speaking adjudication in GST show-cause proceedings breached principles of natural justice by failing to apply mind and by not recording reasons for rejecting the explanation; the adjudicating authority proceeded without affording an appropriate personal hearing after the taxpayer filed a reply, so the order was set aside and the matter remitted for fresh adjudication. The remand requires the authority to fix hearing dates after the reply, allow the petitioner to address any doubts, and record cogent, specific reasons if it rejects parts of the explanation; ex parte action is permissible only if the petitioner fails to appear at such hearing.

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Issues: Whether the impugned order dated 18.12.2025 passed under Section 74 of the Act is non-speaking and violative of the principles of natural justice, warranting setting aside and remittal to the adjudicating authority.

Analysis: The Court examined the impugned order and the record of proceedings including the show-cause notice, the reply dated 19.08.2025 and the chronology of purported personal hearing dates. The adjudicating authority's order largely reproduces the show-cause notice and the noticee's reply and contains only a brief, generic statement that the noticee's submissions are "not appropriate" and that supporting documents were not furnished. The order contains inconsistent or incomplete narration regarding fixation of personal hearing dates and does not record whether any hearing was afforded after the reply was filed. The adjudicating authority did not address specific factual contentions in the reply nor record reasons for rejecting them; the conclusion was reached without discernible application of mind to the explanations and evidence placed on record.

Conclusion: In favour of Assessee. The impugned order dated 18.12.2025 is set aside and the matter is remitted to the adjudicating authority to pass a fresh order after affording due opportunity of personal hearing and recording cogent reasons if the explanation is rejected.

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