Consideration of reply and supporting documents required before GST adjudication; order set aside and matter remitted.
An adjudication order under the CGST/KGST framework was set aside because the authority did not consider the noticee's reply and supporting documents, including sales extracts and correspondence explaining the GSTR-1 and GSTR-3B mismatch. The matter was remitted for fresh consideration, with the noticee permitted to file a fresh reply and be heard personally. The authority was directed to examine the material already submitted, allow supplier verification if procedurally permissible, and confine the adjudication to the scope of the show-cause notice. All merits were left open.
Issues: Whether the adjudication order passed under Section 73 of the CGST/KGST Act was liable to be set aside and the matter remitted for fresh consideration on the ground that the reply and supporting documents were not duly considered.
Analysis: The petitioner had filed replies along with supporting material, including sales extracts and correspondence, and contended that the alleged mismatch between the output tax shown in GSTR-1 and the tax paid in GSTR-3B stood explained. The impugned order was passed without adverting to the material placed with the replies. In these circumstances, the matter required reconsideration by the authority. The petitioner was also permitted to file a fresh reply and to be afforded a personal hearing. The authority was directed to examine the documents already submitted, permit verification from suppliers if permissible under the procedure, and confine the adjudication to the scope of the show-cause notice.
Conclusion: The adjudication order was set aside and the matter was remitted for fresh consideration, with all merits kept open.
Ratio Decidendi: An adjudication order that does not consider the reply and supporting documents submitted by the noticee can be set aside and remitted for fresh decision after hearing, while the authority must remain within the scope of the show-cause notice.
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