GST demand on pre-regime works contracts remanded for fresh adjudication after consideration of a later State authority order.

GST demand on works contract services was challenged on the ground that the services were rendered before the GST regime, although payments were received after 01.07.2017, and the petitioner also relied on payments already made and a later State authority order on an identical demand for part of the period. The Court noted that each transaction must be specifically particularised and supported by material, and that the subsequent State authority order dated 17.02.2025 for 2020-2021 had to be considered before final adjudication. The impugned order was set aside and the matter remitted for fresh adjudication on merits after hearing the petitioner.

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Issues: Whether the impugned GST order confirming tax, interest and penalty was liable to be set aside and the matter remitted for fresh consideration in light of the petitioner's objections and the subsequent State authority order.

Analysis: The challenge concerned the confirmation of CGST and SGST liabilities, interest and penalty under the GST enactments for the relevant tax period. The petitioner contended that the demand related to works contract services rendered prior to the GST regime and that the payments were received after 01.07.2017, while also referring to payments already made and to a later assessment order passed by the State authority on an identical demand for part of the period. The Court noted that the petitioner must particularize each transaction and substantiate the claim with supporting material, and further observed that the later State authority order dated 17.02.2025 for the tax period 2020-2021 required consideration before final adjudication.

Conclusion: The impugned order was set aside and the matter was remitted to the respondent for fresh adjudication on merits, after taking note of the subsequent State authority order and after hearing the petitioner.

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