Natural justice breach in GST assessment led to quashing, remand, and release of bank attachment.

An ex parte State GST assessment was set aside because the record showed no effective opportunity of hearing and the order lacked adequate reasons explaining the liability determination. The writ court held that breach of natural justice justified interference despite the availability of a statutory appeal, as the order involved civil consequences. Once the foundational assessment was quashed, the appellate order based on delay also failed. The matter was remanded for fresh adjudication on merits after a proper hearing, with directions concerning deposit already made, an additional deposit, release of bank attachment, and expeditious disposal.

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Issues: Whether the assessment order and the appellate order were liable to be quashed for want of fair hearing and absence of adequate reasons, and whether the matter required fresh adjudication after giving the petitioner an effective opportunity of hearing.

Analysis: The assessment was passed ex parte under the State GST regime and the record disclosed no sufficient opportunity to the petitioner to present its case. The order also did not disclose adequate reasons showing how the liability was determined. Since the order entailed civil consequences and was made in breach of the principles of natural justice, the writ court held that interference was warranted notwithstanding the availability of a statutory appeal. The appellate order, being founded on delay, also could not survive once the foundational assessment order was set aside. The court further protected the petitioner by recognizing the deposit already made, directing an additional deposit, and ordering release of the bank attachment so that the dispute could be reconsidered on merits.

Conclusion: The impugned assessment order and appellate order were quashed, and the matter was sent back for fresh decision after adequate opportunity of hearing, with ancillary directions for deposit, de-freezing of the bank account, and expeditious disposal.

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