GST order cannot sustain if demand exceeds in the Show Cause Notice


Last updated: 05 October 2024
Quick Summary
The Madras High Court has ruled that a Goods and Services Tax (GST) order is invalid if the tax demand confirmed exceeds the amount stated in the original Show Cause Notice (SCN) without proper explanation. In this case, the demand in the final order was significantly higher than that in the SCN, leading the court to set aside the order. This judgment reinforces that tax authorities must adhere to the grounds and amounts specified in the SCN when issuing final orders.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in the case ofNanjappan Senthilkumar v. Deputy Commercial Tax Officer, Erode [Writ Petition No. 11439 of 2024 dated June 3, 2024] held that if the Order passed under Section 73 of the Central Goods and Services Tax Act, 2017 ("the CGST Act")confirming tax demand is unreasoned and exceeds amount specified in Show Cause Notice ("SCN")without any explanation, such order is liable to be set aside.

Citation :
Writ Petition No. 11439 of 2024 dated June 3, 2024

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Bimal Jain
Published in GST
Views : 222
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