Opportunity to reply before GST adjudication required; ex parte order set aside and notice restored for fresh decision.

An adjudication order under Section 73 of the CGST Act was set aside because it had been passed solely on the basis that no response had been received. The petitioner had sought time to file a reply and relied on supporting account statements and invoices, so the Court directed that one opportunity be given to submit a response before fresh adjudication. The matter was restored to the show cause notice stage for reconsideration in accordance with law, with a personal hearing and within the time prescribed under Section 75(3) of the CGST Act.

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Issues: Whether the adjudication order passed under Section 73 of the Central Goods and Services Tax Act, 2017 was liable to be set aside for want of response and whether the petitioner should be afforded an opportunity to file a reply to the show cause notice before fresh adjudication.

Analysis: The order dated 21.12.2023 was passed solely because no response had been received from the petitioner. The petitioner had sought time to file a reply and placed reliance on supporting account statements and invoices. In the circumstances, the Court found that the petitioner ought to be given one opportunity to respond and the matter should be re-adjudicated in accordance with law, with a personal hearing and within the time prescribed under Section 75(3) of the Central Goods and Services Tax Act, 2017.

Conclusion: The impugned order was set aside and the show cause notice was restored for fresh adjudication after granting the petitioner an opportunity to file a response.

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