2025 (12) TMI 550

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....2021 and the consequential demand order dated 26th August 2021 issued by Respondent No. 4 on the ground that the same are without and beyond the jurisdiction of Respondent No. 4 as conferred upon it under Goods and Services Tax Act 2017 ["GST Act, 2017"]. 2. The impugned order is assailed by the petitioner on the ground that GTA providing transportation services is not a person charged with liability to pay tax in terms of Section 2 (98) and Section 9 (3) of the GST Act of 2017. It is argued that there is no incidence of service tax on the GTA for transportation services provided by it and that the incidence of tax is exclusively on the recipient of service only on the principle of reverse charge. 3. The impugned notice of demand pass....

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....pugned is appealable. However, we are not doing so for the reason that we find that the impugned order confirms a demand of Rs. 7,61,80,000/- whereas the show cause notice issued to the petitioner specified a far less amount, i.e. Rs. 4,59,50,000/-. 7. That a show cause notice issued under Section 74(1) must require the assessee in default to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under Section 50 and a penalty equivalent to the tax specified in the notice. For facility of reference, Section 74 (1) is reproduced hereunder:- "(1) Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credi....

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....it is abundantly clear that the essential requirement of a notice to be issued under Section 74(1) is the specification of the amount of tax along with interest payable thereon and penalty equivalent to the tax specified in the notice. This gives a clear and adequate opportunity to the assessee to respond and make representation. Sub-section 7 of Section 75 ensures that while passing a final order in terms of sub-Section 9 of Section 74, the assessing authority does not pass an order for an amount in excess of the amount specified in the notice nor it will pass the order on the grounds other than those specified in the show cause notice. Sub-section 7 of Section 75 is essentially a provision ensuring compliance with the principles of natura....