Natural justice in GST assessments requires effective notice and a real opportunity to respond before adverse orders are passed.

Assessment orders under the GST regime are vitiated where the notice is not effectively communicated and the taxpayer is denied a real opportunity to respond. The Madras HC found that, although the pre-assessment notice was delivered, the assessment order was only reflected on the portal and the common portal communication system faced practical difficulties, including during the pandemic period. On those facts, the Court held that meaningful opportunity and natural justice were not satisfied, quashed the impugned order and remitted the matter for fresh consideration after reply and hearing.

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Issues: Whether the assessment orders and consequential demand summaries were liable to be quashed for want of effective communication of the notice and for violation of principles of natural justice, and whether the matter should be remitted for fresh consideration.

Analysis: The notice preceding the assessment was shown to have been delivered, but the materials indicated that the assessment order was only reflected on the portal and that the communication system under the common portal had practical difficulties. In the surrounding circumstances, including the timing of service and the disruption caused by the pandemic period, the Court held that the petitioner had not been afforded a meaningful opportunity to respond before the adverse orders were passed. The statutory scheme under the Tamil Nadu Goods and Services Tax Act, 2017 and the Tamil Nadu Goods and Services Tax Rules, 2017 contemplates service of notice and a fair opportunity before finalising the assessment.

Conclusion: The impugned order was quashed and the matter was remitted to the respondent to pass a fresh speaking order after granting the petitioner an opportunity to reply and be heard.

Ratio Decidendi: Where an assessment under the GST regime is completed without effective communication of the notice or a real opportunity to respond, the order is vitiated for breach of natural justice and may be set aside with a direction for fresh adjudication.

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