2026-VIL-49-CAL
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SGST High Court Cases

GST - Deviation from notice to show cause, Opportunity of hearing, Access to information in GST portal – Petitioner, a road transport carrier company, was served with show cause notices alleging that the turnover of outward supplies declared by the petitioner in GSTR 3B was less than the actual supplies - The adjudication order, however, held the petitioner liable on a different ground, that the petitioner had opted to pay tax under the Forward Charge Mechanism and therefore the supplies made under the Reverse Charge Mechanism should be treated as taxable under the Forward Charge Mechanism - Whether the adjudication order, which was based on a ground different from the one mentioned in SCN, is valid - HELD – The adjudication order is not valid as it had deviated from the grounds mentioned in the show cause notice. The adjudication order is in violation of Section 75(7) of the CGST Act, 2017 which prohibits confirmation of demand on grounds other than those specified in the notice. In the case at hand the adjudicating authority has done exactly that which has been prohibited - It is now very well settled that an order cannot travel beyond the confines of the preceding notice to show-cause and a person who has been issued a notice to show cause on a particular point cannot be blindsided by passing an order on an entirely different point - the appellate authority has trivialised the error by stating that it was a “technical issue” as it pertained to mere quantification. The appellate authority should also not have made light of such statutory violation by a statutory authority by calling it a mere technicality, as it involved the interpretation of the applicability of the notification to the petitioner's supplies under the RCM - Further, since the SCN was based on data from the GST portal, which may not be accessible to the petitioner, the petitioner should have been provided the relevant information to effectively reply to the notice - The appellate order and the adjudication order are set aside and the matter is remanded back to the Proper Officer for reconsideration after providing the petitioner an opportunity of hearing and access to the relevant information – The petition is disposed of
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