Rajasthan High Court Invalidates GST Demand Over Department's Failure to Issue Form GST ASMT-10
In a significant judicial pronouncement, the Rajasthan High Court has strongly reaffirmed the necessity of adhering to statutory procedures before raising tax demands. In the landmark case of Ramhari And Brothers Vs Joint Commissioner (State Tax), the Court dismantled a GST adjudication order and subsequent recovery actions because the revenue authorities bypassed the mandatory issuance of a scrutiny notice in Form GST ASMT-10.
This ruling serves as a critical reminder that the procedural safeguards embedded within the Goods and Services Tax framework cannot be ignored by adjudicating authorities. The judgment underscores that the principles of natural justice and statutory compliance are prerequisites for any valid tax assessment.
Factual Matrix of the Dispute
The assessee, operating as a sole proprietorship engaged in the oil trading business, held a valid registration under the Rajasthan Goods and Services Tax Act, 2017 (RGST Act). The dispute came to light in a rather abrupt manner for the assessee.
On 16.10.2025, the assessee received alarming SMS notifications from their banking institution indicating that a substantial sum of ₹21,56,177 had been debited from their account. Upon inquiring with the bank, it was revealed that this deduction was executed based on a recovery challan presented by the GST Department.
The "Additional Notices" Tab Dilemma
Seeking clarity, the assessee logged into the official GST portal. Initially, a check under the standard "Notices and Orders" tab yielded no results, creating further confusion. It was only upon the intervention and guidance of their tax consultant that the assessee navigated to the "Additional Notices and Orders" tab. There, they discovered a show cause notice and a final adjudication order dated 22.02.2025.
The assessee maintained that they were completely in the dark regarding these proceedings, having received no prior intimation via SMS or email on their registered contact details.