GST demand based on GSTR-3B and GSTR-2A mismatch set aside for want of fair opportunity, with remand ordered.

GST assessment based on mismatch between GSTR-3B and auto-populated GSTR-2A was set aside because the assessee had not been given a fair opportunity to respond before confirmation of the demand. The Court accepted the explanation that compliance had been handled by an accountant who left abruptly and that the proceedings came to light only when recovery action began. The matter was remitted for fresh consideration, subject to payment of 10% of the disputed tax demand, filing of a reply, and grant of a reasonable opportunity including personal hearing.

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Issues: Whether the assessment order confirming GST demand, based on mismatch between GSTR-3B and auto-populated GSTR-2A, should be set aside for want of a reasonable opportunity and whether the matter should be remanded to enable the petitioner to respond on merits.

Analysis: The petitioner claimed that GST compliance had been handled by an accountant who left abruptly and that the proceedings were not known until recovery action commenced. The tax proposal arose from the mismatch between GSTR-3B returns and GSTR-2A, and the assessment was confirmed because no reply was filed to the show cause notice. In the circumstances, and having regard to the petitioner's inability to participate earlier, the Court found that the interest of justice required an opportunity to contest the demand, subject to terms.

Conclusion: The impugned assessment order was set aside, and the matter was remitted for fresh consideration after payment of 10% of the disputed tax demand, filing of a reply, and grant of a reasonable opportunity including personal hearing.

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