Natural justice in GST assessment requires a reasoned hearing before ex parte tax liability can be sustained

An ex parte GST assessment order imposing civil consequences cannot be sustained where the assessee was not given a fair opportunity of hearing and the determination lacks adequate reasons. Even in ex parte proceedings, the authority must consider the material on record, address the relevant facts and law, and pass a speaking order. The impugned assessment order and consequential demand notice were quashed, and the matter was remitted for fresh adjudication after granting adequate hearing and issuing a reasoned decision.

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Issues: Whether an ex parte GST assessment order and the consequential demand notice 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 hearing the assessee.

Analysis: The order was passed ex parte without affording sufficient opportunity of hearing and without disclosing adequate reasons for the determination of tax liability. Since the order entailed civil consequences, compliance with the principles of natural justice was essential. The authorities were required to adjudicate the facts and law even in ex parte proceedings and to pass a reasoned order after considering the material on record.

Conclusion: The impugned assessment order and demand notice were quashed and the matter was remitted for fresh adjudication after granting adequate opportunity of hearing and passing a speaking order.

Final Conclusion: The writ petition succeeded to the extent of setting aside the ex parte assessment action and securing a fresh merits-based determination before the assessing authority.

Ratio Decidendi: An ex parte order determining tax liability and visiting civil consequences cannot stand unless it is supported by a fair opportunity of hearing and a reasoned decision.

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