Bombay HC Rules Against Copy-Paste GST Orders, Emphasizes Need for Independent Analysis

A GST order can’t be a copy-paste of the show cause notice, and that independent reasoning must be present, the Bombay High Court ruled.

Justices M.S. Sonak and Jitendra Jain mentioned that “simply cutting and pasting the allegations in the show cause notice or mechanically reciting them verbatim does not inspire confidence that due consideration has been shown to the cause, and the decision is made after its due consideration. Ultimately, these are aspects of natural justice principles that should guide the decision-making process in such cases.”

The petitioner has raised concerns regarding the order issued by the Deputy Commissioner of State Tax, also referred to as the first respondent. This order has upheld the GST demand outlined in the show cause notice.

The order is vitiated via non-application of mind, non-consideration of detailed submissions canvassed by the assessee in its replies, taxpayer cited. The said reasoning in the order is a verbatim copy of the statements in the SCN.

As per the bench, the adjudicating authority must issue an order post considering all the related claims and mention the reasons assisting its decision. Without considering the contentions or without furnishing any reasons, specify the absence of application of mind.

Bench mentioned that only cutting and pasting the allegations from the SCN does not lead to giving any independent reasons after due consideration of the contentions of the taxpayer or after due application of mind to those contentions.

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As per the bench, as the same is a case of complete non-application of mind and breach of the principles of natural justice, no point is there in asking the taxpayer to pursue the other remedy of appeal.

The bench in the aforesaid view permitted the petition and remanded the case to the adjudicating authority for fresh consideration.