Effective opportunity of hearing leads to remand for fresh GST adjudication after reply is permitted

Denial of an effective opportunity to reply to a show cause notice under the CGST/Delhi GST framework justified setting aside the adjudication order and remand for fresh consideration. The petitioner was permitted to file a reply within two weeks, and the adjudicating authority was directed to grant a hearing before passing a fresh order. The parties also proceeded on the basis that one further opportunity could be given, so the matter was restored to the adjudicating stage for reconsideration. The challenge to the notifications was not pursued.

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Issues: Whether the impugned adjudication order passed pursuant to the show cause notice under Section 73 of the Central Goods and Services Tax Act, 2017 and the Delhi Goods and Services Tax Act, 2017 should be set aside and the matter remanded for fresh consideration after granting the petitioner an opportunity to file a reply and be heard.

Analysis: The petitioner complained of denial of an effective opportunity to contest the show cause notice, while the respondents fairly agreed that one further opportunity could be granted to file a reply. In these circumstances, the adjudication order was set aside and the matter was sent back to the adjudicating authority for fresh adjudication, with liberty to the petitioner to file a reply within two weeks and with a direction to afford a hearing before passing a fresh order.

Conclusion: The petitioner succeeded to the extent of obtaining setting aside of the impugned order and remand of the matter for reconsideration.

Final Conclusion: The dispute was restored to the adjudicating stage for fresh decision after permitting a reply and hearing, while the challenge to the notifications was not pursued.

Ratio Decidendi: Where the authority agrees to afford one further opportunity, the proper course is to set aside the order and remit the matter for fresh adjudication after hearing the affected party.

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