Effective opportunity in tax proceedings may justify conditional remand and fresh adjudication on the merits.

A tax demand based on a mismatch between GSTR-3B and GSTR-1 was challenged on the ground that the assessee had not effectively participated in the proceedings or received a proper opportunity to contest the demand on merits. The commentary notes that, where notices such as the intimation, show cause notice and personal hearing notice are disputed, the assessee may be entitled to a fresh opportunity in the interests of justice. It also records that remand may be made conditional on prior remittance of part of the disputed tax, after which the matter is to be reconsidered with a reasonable opportunity, including personal hearing.

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Issues: Whether the impugned tax demand order was liable to be set aside for want of a proper opportunity to contest the demand on merits, and whether the matter should be remanded on conditions.

Analysis: The petitioner claimed absence of participation in the proceedings and asserted ignorance of the notices, while the revenue relied on issuance of intimation, show cause notice, and personal hearing notice. The dispute arose from a mismatch between the turnover reflected in GSTR-3B and GSTR-1. In the interests of justice, the petitioner was held entitled to an opportunity to contest the demand on merits, subject to a condition that a portion of the disputed tax be remitted before remand.

Conclusion: The impugned order was set aside and the matter was remanded for fresh consideration after receipt of the required remittance and reply, with a reasonable opportunity including personal hearing to be afforded to the petitioner.

Final Conclusion: The writ petition succeeded to the extent of securing a conditional remand and a fresh adjudication of the tax demand on merits.

Ratio Decidendi: Where the assessee establishes lack of effective participation in tax proceedings, the demand order may be set aside and the matter remanded to ensure a reasonable opportunity to contest the case on merits, including personal hearing, subject to lawful conditions.

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