Natural justice vitiates ex parte GST assessments; unreasoned orders can be quashed and remitted despite statutory remedy.

Ex parte GST assessment orders passed without adequate opportunity of hearing and without intelligible reasons were treated as vitiated by breach of natural justice. The Patna HC held that the availability of a statutory remedy did not bar writ interference where the orders were ex facie illegal and the defects went to the root of the adjudication. Because the assessments entailed civil consequences and the reasoning did not disclose how liability was determined, the orders were quashed and the matter was remitted for fresh adjudication after due hearing and compliance with fair procedure.

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Issues: Whether ex parte assessment orders passed under the Bihar Goods and Services Tax Act, 2017 without affording adequate opportunity of hearing and without assigning intelligible reasons were liable to be quashed and the matter remitted for fresh adjudication.

Analysis: The orders were passed ex parte and no sufficient opportunity was afforded to the assessee to present its case. The reasoning recorded in the orders was found to be inadequate and not decipherable enough to show how the tax liability was determined. The Court held that a statutory remedy did not bar interference where the impugned orders were ex facie illegal and in breach of the principles of natural justice. Since the orders entailed civil consequences and the defects went to the root of the adjudication, fresh consideration by the Assessing Authority was warranted after compliance with fair procedure.

Conclusion: The ex parte assessment orders were quashed and the matter was remitted for fresh decision after affording due hearing and following the principles of natural justice.

Final Conclusion: The assessee obtained relief against the impugned assessments, but the tax liability was left open for reconsideration by the Assessing Authority in accordance with law.

Ratio Decidendi: An assessment order that is ex parte, unreasoned, and passed without adequate hearing can be interfered with in writ jurisdiction notwithstanding the availability of a statutory remedy, because breach of natural justice vitiates the adjudication.

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