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| The Tax Publishers 2025 TaxPub(GST) 2129 (All-HC) CENTRAL GOODS AND SERVICES TAX ACT, 2017
Section 75(7)
Where raising of demand by imposing tax, interest and penalty was ex facie contrary to the amount mentioned in the show cause notice and was in violation of the provisions of section 75(7) of the CGST Act, the order passed by Revenue was unsustainable.
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General provisions relating to determination of tax - Amount of tax, interest and penalty raised in the final order being contrary to amount mentioned in show cause notice - Validity of -
Revenue raised the demand of tax, interest and penalty, being contrary to the show cause notice issued to assessee. Assessee contended that the order was in violation of provisions of section 75(7) of the Act, therefore, deserved to be set aside and the matter be remanded back for reconsideration in accordance with the statute.Held: Section 75(7) specifically stipulates that the amount of tax, interest and penalty demanded in the order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice. Therefore, raising of demand by imposing interest, tax and penalty was ex facie contrary to the provisions of section 75(7) of the Act and hence, the demand order was not sustainable.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. :
IN THE ALLAHABAD HIGH COURT
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