Meaningful opportunity in GST adjudication led to remand, with fresh hearing after partial pre-deposit condition.

Meaningful opportunity to contest a GST demand was treated as necessary where the assessee showed that input tax credit had been reversed in the electronic credit ledger and GSTR-3B return, but that reversal had not been considered in adjudication. The High Court found reconsideration necessary and directed fresh examination of the demand. The matter was remanded on the condition that the assessee remit 10% of the disputed demand and be allowed to file a reply and receive a personal hearing.

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Issues: Whether the impugned order warranted interference for want of a reasonable opportunity to contest the tax demand on merits, and whether the matter should be remanded with a condition of partial pre-deposit.

Analysis: The petitioner placed the electronic credit ledger and the GSTR 3B return to show that the input tax credit had been reversed in May 2022, and that the reversal was not considered while the demand was adjudicated. The respondent relied on the show cause notice and personal hearing already afforded. In view of the material showing reversal of credit and the need to afford a meaningful opportunity to contest the demand, reconsideration was found necessary, but only on terms requiring a deposit of part of the disputed demand.

Conclusion: The impugned order was set aside and the matter was remanded for fresh consideration, subject to the petitioner remitting 10% of the disputed tax demand and being given an opportunity to file a reply and receive a personal hearing.

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