GST demand for return mismatch set aside and remitted for fresh adjudication after opportunity to reply.

A GST demand based on a mismatch between turnover reported in GSTR-7 and GSTR-3B was confirmed without any reply from the assessee, but the Court found that one further opportunity to explain the case was warranted. It noted that the assessing authority was not at fault in passing the order in the absence of a response, yet directed fresh adjudication on merits after granting an opportunity to file a reply and be heard. The assessment order was set aside and the matter remitted, subject to deposit of 10% of the disputed tax within the stipulated time.

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Issues: Whether the assessment order confirming the GST demand, passed without a reply from the assessee, should be set aside and the matter remitted for fresh consideration after granting an opportunity to reply.

Analysis: The dispute arose from a mismatch between the turnover reflected in GSTR-7 and GSTR-3B. The order confirming the demand had been passed because no reply was filed to the notices preceding it. The Court found that the assessee deserved one further opportunity to explain the case, while also noting that the assessing authority was not at fault in passing the order in the absence of any response. A fresh adjudication was directed on merits with an opportunity to file reply and be heard.

Conclusion: The assessment order was set aside and the matter was remitted to the first respondent for fresh adjudication on merits, subject to the condition of deposit of 10% of the disputed tax within the stipulated time.

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