Requirement of Particulars: absence of particulars, reasons or hearing invalidates GST adjudication and ledger debit.

The article addresses validity of a GST show cause notice and related adjudication orders where the notice lacked requisite particulars, the adjudication orders were unreasoned, and no opportunity to be heard was afforded; the court concluded such defects invalidate the notice and orders. It further treats a subsequent communication and debit to the electronic credit ledger as without jurisdiction because the adjudicating officer had become functus officio and the debit flowed from the invalid order; the operative effect ordered reversal and recredit and a fresh notice with full particulars and hearing.

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Issues: (i) Whether the notice to show cause dated February 21, 2023 and the adjudication orders dated May 29, 2023 and June 05, 2023 are valid where the notice and orders lack relevant particulars, reasoning and opportunity of hearing; (ii) Whether the subsequent order dated June 09, 2023 communicating acceptance of the petitioner's reply and the debit of Rs. 2,51,858/- from the petitioner's electronic credit ledger are legally sustainable.

Issue (i): Validity of the show cause notice and adjudication orders dated May 29, 2023 and June 05, 2023 given absence of particulars, absence of reasons and absence of opportunity of hearing.

Analysis: The impugned notice to show cause did not set out requisite particulars necessary to enable a meaningful reply. The adjudication order dated May 29, 2023 was unreasoned and did not set out facts or basis for the conclusion, and the orders were passed without affording an opportunity of hearing as envisaged by the statutory scheme. The subsequent re-uploading of the same adjudication order on June 05, 2023 replicated the same defects. The combination of omission of particulars in the notice, absence of reasons in the adjudication order and failure to afford hearing engages the statutory provisions requiring reasoned adjudication and procedural fairness under the Act.

Conclusion: The notice to show cause and the adjudication orders dated May 29, 2023 and June 05, 2023 are set aside as invalid. This conclusion is in favour of the assessee.

Issue (ii): Validity of the order dated June 09, 2023 communicating acceptance of the petitioners' reply and the consequential debit of Rs. 2,51,858/- from the petitioners' electronic credit ledger.

Analysis: The order dated June 09, 2023 could not validly be issued after the adjudicating officer had become functus officio by passing the May 29, 2023 adjudication order; accordingly that communication is without jurisdiction. The debit of Rs. 2,51,858/- arose from the invalid adjudication order and, per the respondents' own affidavit admitting inadvertent uploading, lacks legal basis. Equity and statutory consistency require reversal of an unauthorized debit to the electronic credit ledger and recredit of the same amount.

Conclusion: The order dated June 09, 2023 is without jurisdiction and the debit of Rs. 2,51,858/- is invalid; the revenue is directed to reverse and recredit the debited amount. This conclusion is in favour of the assessee.

Final Conclusion: The writ petition is allowed by setting aside the adjudication orders dated May 29, 2023 and June 05, 2023 and the order dated June 09, 2023; the notice-issuing authority must provide all relevant particulars supporting the show cause notice dated February 21, 2023 and permit the petitioners to file a fresh reply; the respondent GST authorities shall reverse and recredit the amount debited from the petitioners' electronic credit ledger within two weeks of communication of this order.

Ratio Decidendi: A show cause notice under the Goods and Services Tax scheme must set out relevant particulars and an adjudication order imposing tax must be reasoned and preceded by opportunity of hearing; orders issued without such particulars, reasons or hearing, and any consequential unauthorized debit to electronic ledgers, are invalid and must be set aside with restoration of the affected amounts.

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