Natural justice requires a fair hearing before tax demand enforcement, with conditional remand for fresh adjudication.

An assessment based on a mismatch between Form GSTR-3B and Form GSTR-1 was set aside because the taxpayer had not been given a reasonable opportunity to contest the demand. The Court accepted that the proceedings were not effectively communicated and held that natural justice required a fresh hearing on merits. The matter was remitted for de novo consideration, with the remand made conditional on deposit of an additional portion of the disputed tax over and above the amount already remitted.

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Issues: Whether the assessment order could be set aside for want of a reasonable opportunity of hearing and the matter remitted with conditions.

Analysis: The confirmed tax demand arose from a mismatch between the return filed in Form GSTR-3B and the outward supply statement in Form GSTR-1. The order in original had been passed without hearing the petitioner, as the show cause notice was not responded to. Accepting the petitioner's assertion that the proceedings were not effectively communicated, the Court found that the interests of justice required affording an opportunity to contest the demand on merits. The remand was made conditional on deposit of an additional portion of the disputed tax amount, over and above the amount already remitted.

Conclusion: The assessment order was set aside and the matter was remitted for fresh consideration after the petitioner was given an opportunity to reply and be heard, subject to compliance with the deposit condition.

Final Conclusion: The petitioner obtained a conditional remand for de novo adjudication after restoration of the opportunity to contest the demand.

Ratio Decidendi: Where an assessment is made without affording a reasonable opportunity to contest the demand, the order may be set aside and remitted for fresh adjudication with appropriate conditions to secure compliance.

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