J&K&L High Court Says GST Demand Cannot Exceed Amount Specified In Show Cause Notice

The Jammu & Kashmir and Ladakh High Court held that a GST demand cannot exceed the amount stated in the show cause notice, and any higher demand violates principles of fairness under GST law.

The Court set aside a demand issued against a goods transport agency, after finding that authorities had raised a higher figure in the final order without allowing the taxpayer to respond.

The Court said that tax officers must strictly adhere to the limits and grounds specified in the notice, and any deviation makes the demand unsustainable.

The matter was remanded for fresh consideration. 

[XYZ Transport Agency v. Union of India]