Natural justice breach in ex parte GST assessment led to quashing of orders and remand for fresh hearing.

An ex parte tax adjudication order passed without adequate opportunity of hearing and without a reasoned basis is vitiated for breach of natural justice. The High Court held that such civil consequences justified interference despite the availability of a statutory remedy, and the consequential appellate and recovery orders could not survive once the foundational order was set aside. The impugned orders were quashed and the matter was remanded to the Assessing Authority for fresh adjudication after a hearing and a speaking order on merits.

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Issues: Whether the ex parte assessment and recovery orders under the Bihar Goods and Services Tax Act, 2017 were liable to be quashed for violation of natural justice and absence of reasons, and whether the matter should be remanded for fresh decision after opportunity of hearing.

Analysis: The order was found to have been passed without affording sufficient time and adequate opportunity to the petitioner to present its case. It was also found to be ex parte in nature and lacking discernible reasons showing how the tax liability was determined. Since such an order entails civil consequences and is contrary to the principles of natural justice, the Court interfered notwithstanding the availability of statutory remedy. The connected appellate and recovery orders, being consequential, could not survive once the foundational order was set aside. The Court also directed restoration of procedural fairness before the Assessing Authority, including a fresh hearing and a speaking order on merits.

Conclusion: The impugned orders were quashed and the matter was remanded to the Assessing Authority for fresh adjudication after complying with natural justice; the petitioner was granted consequential interim protection and liberty to pursue remedies after the fresh order.

Final Conclusion: The writ petition succeeded to the extent of setting aside the adverse orders and securing reconsideration on merits by the Assessing Authority, while all substantive issues were left open.

Ratio Decidendi: An ex parte tax adjudication order passed without adequate opportunity of hearing and without a reasoned basis is vitiated for breach of natural justice and must be set aside, with consequential remand for fresh decision on merits.

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