GST Authorities cannot Add New Defects in Orders beyond those Specified in SCNs: Madras HC

The Madras High Court has ruled that GST authorities cannot add new defects in their orders that were not mentioned in the show-cause notices (SCNs). In this case, the tax department sought to introduce additional grounds for non-compliance after issuing the initial SCN. The court held that it was improper to introduce new allegations at a later stage and emphasized that the taxpayer must be informed of all the defects upfront. This judgment is significant in reinforcing the principle of fairness and transparency in the GST system, ensuring that businesses are not caught off-guard by new allegations during the adjudication process.