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Adjudicating Authority can not travel beyond the scope of show cause notice. Any order passed by the adjudicating authority beyond the scope of show cause notice is not legal and liable to be set aside. Therefore, the penalty imposed under Section 122 (2) (b) is beyond the scope of show cause notice and is set aside.

Refund— In the instant case, the appellant is engaged in manufacturing and supply of Acrylic Yarn falling appeared to have wrongly claimed GST refund which was further sanctioned erroneously by the adjudicating authority. the adjudicating authority found that the appellant has suppressed/mis-declared the value of Net ITC in the refund application resulting in taking excess refund and this act attracts penalty under Section 122 (2) (b) of the CGST/RGST Act, 2017. held that— Appellant has contested that penalty confirmed under Section 122 (2) (b.) is beyond the scope of show cause notice, as the penalty was proposed under Section 122 (1) of the Act. The appellant has also relied on various case laws in their defence, which are squarely applicable in the present case. I find force in the appellant’s contention. Adjudicating Authority can not travel beyond the scope of show cause notice. Any order passed by the adjudicating authority beyond the scope of show cause notice is not legal and liable to be set aside. Therefore, the penalty imposed under Section 122 (2) (b) is beyond the scope of show cause notice and is set aside.