Natural justice in GST assessment: ex parte demand order quashed for lack of hearing and reasons, remitted for fresh adjudication.

An ex parte GST assessment order and the corresponding Form GST DRC-07 were quashed because the assessee was not given a sufficient opportunity of hearing and the order did not record adequate reasons for determining the demand. The court held that, despite the availability of a statutory remedy, interference was warranted where civil consequences followed from a reasonless order passed in breach of natural justice. The matter was remitted for fresh adjudication on merits, with directions to allow filing of documents, provide a hearing, and pass a reasoned order.

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Issues: Whether the ex parte assessment order and corresponding summary in Form GST DRC-07 were liable to be quashed for breach of natural justice and absence of reasons, and whether the matter required fresh adjudication with an opportunity of hearing.

Analysis: The impugned order was passed ex parte and no sufficient opportunity was afforded to the assessee to present its case. The order also failed to disclose reasons adequate enough to show how the demand was determined, despite the civil consequences flowing from the determination. In such circumstances, interference was justified notwithstanding the availability of a statutory remedy. The matter therefore required fresh decision on merits after compliance with natural justice, including an opportunity to file documents and be heard.

Conclusion: The ex parte assessment order and Form GST DRC-07 were quashed and the matter was remitted for fresh consideration on merits after affording due hearing and passing a reasoned order.

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