Natural justice in GST assessment matters led to quashing and conditional remand for fresh hearing and reconsideration.

Assessment orders passed without affording the taxpayer a final hearing were vulnerable for breach of natural justice, even though the record showed limited participation during the proceedings. The Madras HC therefore quashed the orders and remanded the matters for fresh consideration, enabling the taxpayer to file a reply and be heard again. The remand was made conditional on deposit of 12.5% of the disputed tax demand in each order and compliance with the prescribed time limits for reply and re-adjudication.

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Issues: Whether the impugned assessment orders were liable to be quashed for breach of natural justice and whether the matter should be remanded for fresh consideration on conditions.

Analysis: The proceedings were initiated through notice in Form GST ASMT-10, followed by further notices and personal hearing notices. The record indicated that the petitioner had not effectively participated in the assessment proceedings until coercive steps were taken, but it was also clear that the assessment orders were passed without affording a hearing before finalisation. In these circumstances, interference was warranted to enable the petitioner to contest the tax demand. The remand was justified subject to a condition requiring partial remittance of the disputed tax demand, together with an opportunity to file a reply and be heard afresh.

Conclusion: The assessment orders were quashed and the matters were remanded for reconsideration, subject to deposit of 12.5% of the disputed tax demand in each order and compliance with the stipulated time limits for reply and fresh adjudication.

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