Natural justice and speaking reasons are essential in GST adjudication; ex parte tax orders without hearing may be quashed and remanded.

Assessment and appellate orders under Section 74 of the Bihar Goods and Services Tax Act, 2017 were held unsustainable where they were passed ex parte without affording the assessee a fair opportunity of hearing and without recording adequate reasons. Because the orders carried civil consequences, the absence of natural justice and of a speaking order justified quashing. The matter was remitted for fresh adjudication on merits after providing adequate opportunity to the assessee.

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Issues: Whether the assessment and appellate orders passed under Section 74 of the Bihar Goods and Services Tax Act, 2017 were liable to be set aside for violation of the principles of natural justice and absence of adequate reasons.

Analysis: The impugned orders were passed in an ex parte manner. No sufficient opportunity of hearing was afforded to the assessee, and the orders did not disclose adequate reasons showing how the tax liability was determined. Since the orders entailed civil consequences, the lack of fair hearing and the absence of a speaking order rendered them unsustainable. The matter was therefore fit to be remitted for fresh adjudication after compliance with natural justice.

Conclusion: The impugned orders were quashed and the matter was remanded to the Assessing Authority for fresh decision on merits after giving adequate opportunity of hearing.

Ratio Decidendi: An ex parte tax order passed without fair hearing and without reasons cannot be sustained when it results in civil consequences; such an order may be quashed and remitted for fresh adjudication.

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