Natural justice in GST assessment: demand order set aside and matter remanded after alleged non-service of show cause notice.

An assessment order confirming tax, interest and penalty was set aside because the assessee claimed non-receipt of the show cause notice and denial of an effective opportunity to respond. The Delhi HC noted the explanation that GST registration had been cancelled, the authorised signatory had died, the portal was inaccessible, and no physical notice had been served; the respondent accepted that these facts deserved consideration. The matter was remanded for fresh adjudication, with liberty to file a reply and to be heard before any further order.

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Issues: Whether the assessment order confirming tax, interest and penalty could be sustained when the assessee claimed non-receipt of the show cause notice and denial of an effective opportunity to respond.

Analysis: The petitioner's case was that the GST registration had been cancelled, the authorised signatory had died, the portal was inaccessible, and no physical notice had been served. The respondent fairly accepted that this explanation for non-receipt of the show cause notice merited consideration. In these circumstances, the impugned order was not allowed to stand and the matter was sent back for fresh adjudication after permitting the petitioner to file a reply and after granting a hearing.

Conclusion: The order confirming the demand was set aside and the matter was remanded for reconsideration after affording the petitioner an opportunity to respond and be heard.

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