Prior GST notice and conditional reply opportunity led the HC to quash assessment orders and reopen consideration on merits.

Prior GST show cause notice under DRC-01 had been served, but the assessment orders were issued before the assessee's reply was considered. The HC quashed the impugned orders and treated them as an addendum to the earlier notice, preserving the show cause process. It granted liberty to file a reply within 30 days subject to deposit of 10% of the disputed tax, so that the matter could be reconsidered on merits after receiving the response and relevant materials.

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Issues: Whether the impugned assessment orders were liable to be quashed and whether the petitioner should be permitted to reply to the prior GST notices on payment of a portion of the disputed tax.

Analysis: The writ petitions were disposed of at admission stage. The impugned orders were found to have been passed despite prior GST DRC-01 notices having been served, and the petitioner stated that it was willing to deposit 10% of the disputed tax within the stipulated time. The orders were therefore set aside, with liberty to file a reply within 30 days subject to the stated deposit, and the impugned orders were to be treated as an addendum to the earlier show cause notices.

Conclusion: The assessment orders were quashed and the petitioner was granted an opportunity to reply, subject to deposit of 10% of the disputed tax; the relief was thus substantially in favour of the petitioner but with conditions.

Final Conclusion: The disputes were not decided on merits, but the impugned orders were annulled and the matter was left open for fresh consideration on the basis of the petitioner's reply and the available materials.

Ratio Decidendi: Where prior notice had been issued and the assessee is afforded a conditional opportunity to reply, the impugned order may be quashed and treated as part of the show cause process so that the matter can be reconsidered on merits.

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