GST Demand Order Set Aside for Non-Consideration of Adjustment Request

GST Demand Order Set Aside for Non-Consideration of Adjustment Request

Issue: Whether a GST demand order is valid when it fails to address the assessee’s request for adjusting the demand against the available IGST balance.

Facts:

• A show cause notice was issued to the assessee under Section 73 of the CGST Act for the period 2018-19.
• The assessee responded to the notice and requested that the demand for CGST and SGST be adjusted against the available IGST balance of Rs. 16.75 lakhs.
• The impugned order was passed, raising a demand for tax, interest, and penalty, without considering the assessee’s adjustment request.

Decision:

• The court reviewed the record and found that the assessee’s submission for adjusting the tax demand was not addressed in the impugned order.
• The court held that the impugned order and the demand were to be set aside to the extent of considering the assessee’s prayer for adjusting the tax demand.
• The matter was remanded to the adjudicating authority to pass an appropriate order after considering the assessee’s request for adjustment.

Key Takeaway:

This case highlights the importance of considering all relevant submissions made by the assessee before passing a demand order. The adjudicating authority’s failure to address the assessee’s request for adjusting the tax demand against the available IGST balance rendered the order invalid. This decision ensures that taxpayers’ legitimate requests are duly considered and that orders are passed in a fair and transparent manner.