Factual clarification in GST adjudication justified remand for fresh consideration after the record was found incomplete.

Where an adjudication order under the Karnataka GST Act rests on factual material that requires explanation from the noticee, and the existing record does not permit a fair final determination, the proper course is to set aside the order and remit the matter for fresh consideration. The Karnataka HC found that the petitioner's communication on revised turnover needed further clarification and that other material could affect the result. It therefore set aside the adjudication order and remitted the matter to the stage of reply to the show-cause notice for fresh adjudication.

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Issues: Whether the adjudication order passed under Section 73(9) of the Karnataka Goods and Services Tax Act, 2017 deserved to be set aside and the matter remitted for fresh adjudication in view of the petitioner's explanation and the factual clarification required.

Analysis: The adjudication was based on the petitioner's communication regarding revised turnover, but the petitioner asserted that the communication required further explanation and that other material existed to show that it would not materially affect the case. The order of adjudication was found to rest on a factual matrix requiring clarification from the petitioner's side. In those circumstances, the matter warranted reconsideration rather than final determination on the existing record.

Conclusion: The adjudication order was set aside and the matter was remitted to the stage of reply to the show-cause notice for fresh adjudication.

Ratio Decidendi: Where an adjudication order rests on factual material requiring explanation from the noticee and the existing record does not permit a fair final determination, the proper course is to set aside the order and remit the matter for fresh consideration.

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