#Adjudication

The NCLAT held that a without-prejudice deposit cannot substitute the mandatory adjudication of debt, default, and maintainability under Section 7 IBC. Setting aside an NCLT order that closed proceedings upon deposit, the tribunal ruled such deposits do not dispense with the creditor's right to a full determination of statutory prerequisites for CIRP initiation.

The Punjab & Haryana High Court ruled that failure to provide a personal hearing under Section 75(4) of the CGST Act renders an adjudication order void, even if the assessee does not respond to the show cause notice. This decision reinforces the principle of natural justice in tax proceedings, impacting all GST adjudications where procedural compliance is contested.

The Karnataka High Court ruled that the same GST officer conducting both audit and adjudication breaches principles of natural justice, rendering parallel proceedings void. The judgment mandates separation of functions to ensure procedural fairness under the CGST Act, impacting all GST assessees facing dual proceedings.