Adjudication order by GST officer lacking relevant facts and basis of decision is bad in law – Allahabad High Court {F.K. Fancy Zari Art V/s Union of India (2025) 32 Centax 232 (All.)}
Issue:
Whether an adjudication order that lacks reasoning and merely reproduces the show cause notice is valid under Section 75(6) of the CGST Act.
Facts:
F.K. Fancy Zari Art was issued a show cause notice under Section 73(1) of the CGST Act for alleged tax discrepancies, to which no reply was filed. The adjudicating authority passed an order dated 13 August 2024 confirming the tax demand, merely referring to the notice and lack of response, without setting out any independent reasoning or relevant facts.
Held:
The Allahabad High Court held that the adjudication order violated Section 75(6), which requires that the order must set out relevant facts and the basis of the decision. Even if no reply is filed, the officer must pass a self-contained, reasoned order. Since this requirement was not fulfilled, the order was quashed and the matter was remanded for fresh adjudication after giving the petitioner an opportunity to be heard.
