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It is a clear case where procedure contemplated under Section 74 especially, under Section 74(5) has not been complied with. Therefore, on that ground, this Court is inclined to set aside the order and remand the matter back to the respondents.

Section 74 of the CGST Act, 2017 – Demand Notice --––- The petitioner prayed for quashing the impugned proceedings of the 1st respondent dated 09.12.2021 and direct the 1st respondent to allow the petitioner to adjust the credit amount of Rs.40,505/- which was blocked. The court observed that in the notice dated 01.11.2021, it is wrongly mentioned as Form GST ASMT-10 and that has been replied on 24.11.2021. Thereafter, straight away the order under Section 74(1) was issued on 09.12.2021. It is a clear case where procedure contemplated under Section 74 especially, under Section 74(5) has not been complied with.

Held that:- The Hon’ble High Court set aside the order and remanded the matter back to the respondents.

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