GSTAT says GST demand fails if show-cause notice rests on wrong facts
In short
GST Appellate Tribunal said a GST demand cannot stand if the show-cause notice starts from wrong facts. It also said tax officials cannot bring in new reasons without giving the taxpayer a chance to answer.
What the reporting says
GST Appellate Tribunal said a GST demand cannot be sustained when the show-cause notice is based on incorrect foundational facts. The cited position also says authorities cannot shift to new grounds without giving the taxpayer a chance to respond. The ruling underscores that tax demands must rest on the original factual basis and fair notice.
Why it matters
GST Appellate Tribunal ruled that a GST demand based on incorrect foundational facts cannot be sustained. The decision affects taxpayers facing GST notices and the way tax authorities build and defend demands.