GST Update

 Desk of CA. Praveen Sharma – 870 Series (CAPS) 

Allahabad High Court in the case of Kisan Brick Field, Para Saray Ityathok Gonda

The petitioner challenged two orders—one dated 16.02.2025 raising a GST demand of ?6,52,259.04 for FY 2020–21, and another dated 08.10.2025 rejecting the appeal as time-barred.

A show-cause notice was issued on 11.11.2024 under Section 74, but since it was uploaded only under the “Additional Notices” tab, the petitioner claims they were unaware and could not respond.

A reminder was later uploaded with another reply date, yet the petitioner again could not appear, leading to an ex-parte order confirming the entire demand.

It was argued that the final demand exceeded the figure mentioned in the SCN, violating Section 75(7), which prohibits tax, interest, and penalty beyond what is proposed in the notice.

The petitioner also claimed violation of natural justice as no personal hearing date was provided.

The Court noted that the SCN proposed a demand of only ?2,34,626.52, whereas the final order demanded ?6,52,259.04, which breached Section 75(7).

The Court quashed both orders and remanded the matter to the adjudicating authority to give the petitioner a proper opportunity to reply and be heard before issuing a fresh order.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS