Proper notice and merits-based adjudication required in GST turnover mismatch dispute; assessment set aside and remanded.

An assessment order arising from an alleged turnover mismatch in GSTR-7 and GSTR-3B was challenged for want of proper notice. The Court found that the notice process required reconsideration and that the dispute called for a merits-based examination, so limited interference was justified. The assessment order was set aside and the matter was remitted to the assessing authority for fresh adjudication on merits, with liberty to file a consolidated reply and deposit 20% of the disputed tax. The substantive tax liability was left open for fresh decision by the authority.

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Issues: Whether the assessment order could be sustained in the absence of proper notices and whether the petitioner was entitled to interference and remand.

Analysis: The dispute arose from an alleged mismatch in turnover reported in GSTR-7 and GSTR-3B. The petitioner asserted that the impugned order was passed without due notice, while the respondents relied on portal postings and the availability of an appellate remedy. Considering the nature of the dispute and the claim of non-compliance with the notice process, the Court found that the petitioner had a case warranting limited interference.

Conclusion: The impugned assessment order was set aside and the matter was remitted to the assessing authority for fresh adjudication on merits, with liberty to file a consolidated reply and deposit 20% of the disputed tax. The relief was granted in favour of the petitioner only partly.

Final Conclusion: The writ petition resulted in quashing of the assessment and remand for reconsideration, thereby leaving the substantive tax liability open for fresh decision by the authority.

Ratio Decidendi: Where an assessment is found to require reconsideration on account of the notice process and the dispute calls for merits-based examination, the proper course is to set aside the order and remit the matter for fresh adjudication.

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