GST Demand Cannot Exceed Amount Mentioned In Show Cause Notice: J&K&L High Court

The Jammu and Kashmir and Ladakh High Court held that tax authorities cannot raise a GST demand exceeding the amount specified in the show cause notice. The Court clarified that the notice defines the scope and limits of adjudication, and any enhancement beyond its terms violates the principles of natural justice. Taxpayers must be given clear and advance information about the precise allegations and financial exposure to enable an effective defence. This ruling prevents arbitrary enlargement of tax liability, improves precision and discipline in departmental notices, and protects taxpayers from unexpected financial burdens. It strengthens procedural fairness, reduces disputes arising from departmental overreach, and promotes transparency and trust in GST adjudication processes.