Disputed GST exemption claim led to remand for fresh consideration after inadequate opportunity to place material on record.

A tax demand based on a disputed exemption claim under Notification No. 12/2017-Central Tax (Rate) was found unsuitable for final determination where the assessee had not effectively placed the relevant material, including invoices and the exemption entry, before the authority. The mismatch between GSTR-1 and GSTR-3B was also capable of reconciliation if proper opportunity was granted. On that basis, the adjudication order and summary orders were set aside and the matter was remitted for fresh consideration on merits, with the assessee's contentions kept open.

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Issues: Whether the adjudication order and summary orders were liable to be set aside and the matter remitted for fresh consideration in view of the petitioner's claim of exemption under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.

Analysis: The petitioner asserted that the taxable character of the services had been wrongly determined because the relevant exemption entry under the notification had not been properly placed before the authority. It was also noticed that the petitioner claimed a mismatch between GSTR-1 and GSTR-3B could be reconciled if an effective opportunity were granted. In view of the claimed exemption, the alleged failure to place material such as invoices at the proper stage, and the substantial tax recovery already made, the matter warranted reconsideration on merits.

Conclusion: The adjudication order and the summary orders were set aside and the matter was remitted for fresh consideration.

Final Conclusion: The petitioner secured a remand for reconsideration on merits, with all contentions kept open.

Ratio Decidendi: Where a tax demand is founded on a disputed exemption claim and the assessee has not had an adequate opportunity to place material on record, the adjudication may be set aside and remitted for fresh decision on merits.

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