Natural justice in GST assessment: ex parte order without hearing or reasons was quashed and remitted for fresh decision.

An ex parte GST assessment order under the Bihar Goods and Services Tax Act, 2017 was found unsustainable because the taxpayer was not given adequate opportunity of hearing and the order did not contain reasons showing how liability was determined. The HC held that an order carrying civil consequences must comply with natural justice and be supported by a speaking order; the availability of a statutory remedy did not prevent interference on these facts. The assessment order and accompanying summary order were therefore set aside, and the matter was remitted for fresh adjudication on merits after affording proper hearing.

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Issues: Whether the ex parte assessment order and the accompanying summary order were vitiated for breach of natural justice and absence of reasons, warranting quashing and remand for fresh adjudication.

Analysis: The order was passed ex parte in proceedings under Section 73(1) of the Bihar Goods and Services Tax Act, 2017 and Rule 142(5) of the Bihar Goods and Services Tax Rules, 2017. It was found that no sufficient opportunity of hearing had been afforded and that the order did not disclose adequate reasons to explain how the tax liability had been determined. Since the order entailed civil consequences and suffered from violation of the principles of natural justice, interference was held to be justified notwithstanding the availability of statutory remedy.

Conclusion: The ex parte order and the summary order were set aside, and the matter was remitted for fresh decision on merits after affording adequate opportunity of hearing and passing a speaking order.

Ratio Decidendi: An ex parte fiscal order having civil consequences, if passed without adequate hearing and without reasons, is liable to be quashed and sent back for fresh consideration in compliance with natural justice.

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