Natural justice in GST assessment: pre-reply hearing and non-speaking orders led to quashing and remand.

Assessment orders were quashed where the authority failed to consider the assessee's replies, gave a personal hearing before receiving those replies, and passed non-speaking orders without recording reasons for rejecting the explanation. The court held that this approach was inconsistent with the requirement of a hearing after receipt of the reply when an adverse decision is contemplated, and with the principles of natural justice. The matters were remanded for fresh consideration after a proper personal hearing and due application of mind to the objections raised.

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Issues: Whether the impugned assessment orders were liable to be quashed for violation of principles of natural justice, including failure to consider the replies and grant of personal hearing before receipt of the explanation.

Analysis: The replies filed by the assessee had specifically explained the alleged mismatch and supported the explanation with documents, but the assessment orders did not record reasons for rejecting those replies. The personal hearing was also afforded before the replies were received, which was held to be inconsistent with Section 75(4) of the Tamil Nadu Goods and Services Tax Act, 2017, because hearing is required after a reply is received and when an adverse decision is contemplated. The orders were found to be non-speaking and passed without proper application of mind to the objections raised.

Conclusion: The impugned assessment orders were quashed and the matters were remanded for fresh consideration after affording a proper personal hearing and following the principles of natural justice.

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