GSTAT TVM says Demand Based on Incorrect SCN Foundation Cannot Survive

GSTAT Thiruvananthapuram set aside the appellate order sustaining a GST demand arising from alleged unreported sales returns of ₹70.29 lakh. The SCN proceeded on the foundational allegation that no credit notes had been issued, whereas the adjudication order itself recorded that credit notes existed and proceeded to question their dates, values and genuineness. The Tribunal held that this shift in the basis of the demand, without notice and a personal hearing, violated Sections 75(4) and 75(7) and the principles of natural justice.