Natural justice in GST assessments led to quashing of an ex parte best judgment order and remand for fresh hearing.

An ex parte best judgment assessment under the Bihar Goods and Services Tax Act was held unsustainable because it was issued without an effective opportunity of hearing and without recorded reasons, despite imposing civil consequences. The court applied the principles of natural justice and quashed the assessment order for procedural breach. The matter was remanded for fresh consideration on merits, with directions that both sides be heard before a lawful decision is taken.

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Issues: Whether the ex parte best judgment assessment under Section 62(1) of the Bihar Goods and Services Tax Act, 2017 was liable to be quashed for violation of the principles of natural justice.

Analysis: The impugned assessment was passed without affording adequate opportunity of hearing or assigning reasons, even though it fastened financial liability and therefore entailed civil consequences. Such an order, made without compliance with natural justice, could not be sustained. The petitioner also expressed readiness to deposit a sum and participate in fresh proceedings, enabling reconsideration of the matter on merits.

Conclusion: The assessment order was quashed and set aside on the ground of breach of natural justice, and the matter was remanded for fresh consideration after giving opportunity to both sides.

Final Conclusion: The challenge succeeded on the limited procedural ground, and the assessing authority was directed to decide the matter afresh in accordance with law after hearing the parties.

Ratio Decidendi: An ex parte tax assessment having civil consequences cannot be sustained unless it is passed in compliance with the principles of natural justice, including an effective opportunity of hearing and a reasoned decision.

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