GST Order Set Aside by HC for Blindly Copying SCN Allegations Without Considering Taxpayer’s Reply

The petitioner, GlobeOp Financial Services (India), filed a writ petition to challenge the order dated 24.02.2025 demanding GST of Rs 70,57,98,2018 for the period April 2020 to March 2021.

Petitioner’s Argument

The learned counsel for the petitioner submitted that:

• The order is invalid because it was passed without the application of mind and without considering the responses and details filed by the petitioner on 27 January 2025 and 6 February 2025.
• The order is the verbatim copy of the statements in the show cause notice (SCN) dated 28 November 2024 at Exhibit-S.

The learned counsel also demonstrated a chart showing the similarity in the language between the show cause notice and the final order.

Bombay HC Final Order

The High Court observed that this case is a non-application of mind. Additionally, the order is unreasoned, which also violates natural justice. The court refers to Section 75(6) of the CGST Act, which says that the officer must clearly explain the facts and the reasons behind their decision in the final order. Just cutting and pasting the allegations from the SCN to the Order, without considering the assessee’s reply, does not count as independent reasons.

Therefore, the court quashed the order dated 24.02.2025 and remanded the matter to the adjudicating authority for fresh consideration and disposal of the SCN within 3 months. The Court also directed that the authority must give an opportunity of hearing to the petitioner and must consider the response of the petitioner.