GST adjudication orders may be quashed to permit a fresh response, subject to a 10% tax deposit.

The petitioner challenged adjudication and demand orders concerning the tax periods April 2019–March 2020 and April 2022–March 2023.

It said its former full-time director, who had handled tax compliance, transferred his shares and ceased his association with the company on 24 May 2023; the company had not made alternative arrangements before the relevant notices were issued.

The petitioner sought an opportunity to respond to the show-cause notices and to provide reconciliation documents addressing an alleged mismatch between input tax credit claimed in GSTR-3B and that reflected in GSTR-2A.

The State’s standing counsel was heard on whether that opportunity should be granted.

The petition invoked Articles 226 and 227 of the Constitution of India.

The orders arose under Section 73 of the CGST/KGST Act, including an order identified in the judgment’s table as made under Section 73(9).

The Court applied its discretionary jurisdiction to restore an opportunity to participate in adjudication where the petitioner pleaded bona fide reasons for non-participation and asserted that it could produce material relevant to the tax dispute, while imposing conditions to ensure the proceedings were pursued without further delay.

The Court accepted that the petitioner’s explanation—its former director had handled tax affairs and no replacement arrangements had been made—could be debated, particularly given the period that elapsed before alternative arrangements were made.

However, the petitioner pleaded bona fides and offered to produce reconciliation and supporting documents concerning the genuineness of the transactions underlying its GSTR-3B returns.

In the Court’s view, an opportunity to provide that material would permit adjudication on the merits without protracting the proceedings; it therefore restored the response opportunity subject to a deadline and a deposit condition.

The adjudication orders and demand order at Annexures A, B and C were quashed, and the petitioner was permitted to respond to the show-cause notices dated 27 March 2024 and 28 July 2025.

The petitioner was directed, without further notice, to file its responses with reconciliation and supporting documents by 30 October 2026 and, by the same date, to deposit 10% of the tax covered by the impugned adjudication orders, subject to the outcome of the proceedings.