Natural justice in GST assessment led to remand for fresh hearing on disputed Input Tax Credit demand.

The assessment order was set aside for breach of natural justice where the show cause notice and order were communicated only through the GST portal, and the matter was remanded for fresh consideration on the disputed Input Tax Credit demand. The assessee was allowed to contest the demand on merits, with liberty to file a reply and receive a fresh personal hearing before a new assessment order is passed. The remand was made conditional on payment of 10% of the disputed tax demand.

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Issues: Whether the assessment order deserved to be set aside for breach of natural justice and the matter remanded for fresh consideration on the disputed Input Tax Credit demand.

Analysis: The assessment was challenged on the ground that the show cause notice and the order had been uploaded only on the GST portal without effective communication through any other mode. The dispute related to alleged wrongful availment of Input Tax Credit, while the petitioner asserted that the error was inadvertent and arose from incorrect entry in the GSTR-3B return. The Court found it just and necessary to afford an opportunity to contest the demand on merits, while balancing the relief by directing remand on terms and requiring partial payment of the disputed demand.

Conclusion: The assessment order was set aside and the matter was remanded for reconsideration subject to payment of 10% of the disputed tax demand, with liberty to file a reply and receive a fresh personal hearing before a new assessment order is passed.

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