Section 74(5) of the CGST Act, 2017 – Show Cause cum demand Notice –- The petitioner challenged an order dated 21.12.2021 passed under Section 74(5) of the Act. The counsel for the appellants contended that the respondent has acted wholly without jurisdiction as there is no concept of under invoicing in the provisions of Act. The court observed that the order is totally devoid of any reasons. The authority has merely stated that the reply given by the appellants is not satisfactory and devoid of reasons. Therefore, the entire proceedings can be declared to be unsustainable in law. The appellants are entitled to one more opportunity to place the entire factual and legal submissions which the authority should consider.

Held that:- The Hon’ble High Court directed the appellants to submit their additional reply within two weeks. The concerned authority, thereafter, shall afford an opportunity of personal hearing to the appellants and pass a reasoned order on merit. The demand, which has been raised on the appellants, shall be kept in abeyance for a period of four weeks, within which the adjudication shall be completed.