Tax authorities' arbitrary order quashed for disregarding reply without reasons.

The High Court annulled the order issued by the Assistant Commissioner, DGST, due to non-application of mind and breach of natural justice principles. The order had dismissed the petitioner's response to the show-cause notice regarding non-declaration of output tax liability without providing justification. The Court emphasized that show-cause notices leading to additional liabilities, including penalties, must be adjudicated on their merits. The issue concerning the validity of certain notifications under Section 168A of the CGST Act remains open for future challenge if necessary. .....

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