Tvl. Easyway Logistics Vs Assistant Commissioner (ST) (Madras High Court)
Madras High Court held that any order travelled beyond the scope of show cause notice is not maintainable. Thus, impugned assessment order under GST was passed beyond the scope of show cause notice is liable to be quashed.
Facts- Initially, ASMT notice was issued to the petitioner on 24.10.2024, for which the petitioner submitted a detailed reply on 31.10.2024. Pursuant to which, the respondent issued a Show Cause Notice dated 19.11.2024, by annexing the ASMT notice as well the reply filed by the petitioner. However, no detailed show cause notice was issued. Subsequently, impugned assessment order came to be passed by enhancing the figures under IGST, CGST and SGST and therefore the impugned order passed is beyond the scope of the show cause notice, which is in violation of Section 75(7) of the CGST Act, 2017. Subsequently, the petitioner filed the rectification application and the same was rejected vide orders dated 25.06.2025 and 17.07.2025.
This Writ Petition has been filed challenging the order of the respondent dated 12.02.2025 and the consequential orders of the respondent rejecting the application for rectification dated 25.06.2025 and 17.07.2025.
Conclusion- Held that any order travelled beyond the scope of show cause notice is not maintainable. In the case on hand, admittedly impugned assessment order was passed beyond the scope of show cause notice. That apart no detail show cause notice was issued. Thus, this Court instead of setting aside the impugned order is inclined to direct the petitioner to treat the impugned assessment order as the show cause notice and to file reply to the same.
