Reasonable opportunity in tax adjudication: order set aside and matter remanded for fresh reply, documents and personal hearing on terms.

The Madras High Court set aside the impugned tax order for denial of reasonable opportunity and remanded the matter for fresh consideration. The petitioner, who had claimed that transport services were covered by reverse charge, was allowed to file additional supporting documents, including consignment notes, because the earlier reply contained only limited material. That indulgence was made conditional on payment of 10% of the disputed tax demand, after which the authority was required to give a reasonable opportunity, including personal hearing, before deciding afresh.

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Issues: Whether the impugned tax order was liable to be set aside for want of reasonable opportunity and whether the petitioner should be permitted to file a fresh reply and documents on terms.

Analysis: The petitioner had replied to the show cause notice and asserted that the transport services supplied by him were covered by reverse charge. The record showed that only limited documents had been uploaded with the reply, while the petitioner also claimed that supporting documents such as consignment notes were available. The petitioner's case warranted an opportunity to place the relevant material before the authority, but such indulgence was made conditional upon payment of 10% of the disputed tax demand.

Conclusion: The impugned order was set aside and the matter was remanded for fresh consideration after the petitioner remitted 10% of the disputed tax demand and filed additional documents, with a reasonable opportunity including personal hearing to be granted thereafter.

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