GST assessment for GSTR mismatch set aside where effective notice and hearing were disputed, with remand for fresh consideration.

An assessment under the Tamil Nadu GST Act based on mismatch between GSTR-1 and GSTR-3B was challenged on the ground that the pre-assessment notices and opportunity to respond were not effectively furnished. The HC noted the disputed factual position regarding portal uploads and the petitioner's claim of denial of hearing, and did not enter into those merits. As the tax and penalty demanded had already been remitted and the assessee had not been able to place objections, the assessment order was set aside and the matter remanded for fresh consideration after granting adequate opportunity of hearing.

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Issues: Whether the assessment made under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017, based on alleged mismatch between GSTR-1 and GSTR-3B, could be sustained when the petitioner claimed that notice and pre-assessment opportunity were not effectively furnished.

Analysis: The impugned assessment reflected issuance of ASMT-10 and DRC-01A notices and recorded non-filing of reply and non-appearance for personal hearing. However, the petitioner asserted that the relevant notices were not actually uploaded in the portal and that an opportunity to explain the case was denied. The Court declined to enter into the disputed factual merits, but found that the petitioner had been unable to place objections and had already remitted the tax and penalty demanded. In these circumstances, a further opportunity to file objections and have the matter reconsidered was warranted.

Conclusion: The assessment order was set aside and the matter was directed to be reconsidered afresh after granting adequate opportunity of hearing to the petitioner.

Ratio Decidendi: Where an assessee alleges denial of effective opportunity in GST assessment proceedings, and the dispute involves contested factual issues, the assessment may be set aside and the matter remitted for fresh consideration after due hearing.

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