Natural justice in ex parte GST assessments leads to quashing and remand for fresh merits review.

Ex parte assessment orders under Section 62 of the Bihar GST Act were quashed because they imposed civil consequences without adequate hearing or recorded reasons, breaching natural justice. The HC held that such assessments cannot stand where the affected party is not given a fair opportunity to respond. The matter was remanded for fresh consideration on merits, with directions for compliance with natural justice in the renewed proceedings.

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Issues: Whether the ex parte assessment orders passed under Section 62 of the Bihar Goods and Services Tax Act, 2017 were liable to be quashed for violation of the principles of natural justice, and whether the matter should be remanded for fresh consideration.

Analysis: The assessment orders fastened financial liability and therefore entailed civil consequences. They were found to have been passed without affording adequate opportunity of hearing or recording reasons. On that limited ground, the orders were set aside, while the petitioner undertook to deposit a sum with the authority and cooperate in the fresh proceedings. The matter was directed to be reconsidered on merits in compliance with natural justice.

Conclusion: The impugned assessment orders were quashed and the matter was remanded to the authority for fresh decision on merits after giving due opportunity to the parties.

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