RCM liability mismatch remanded for fresh adjudication after payment evidence and opportunity of hearing.

The assessment order was set aside only to the extent it addressed the reverse charge mechanism liability mismatch, and the matter was remanded for fresh consideration. The Court noted that the assessee had produced material showing payment of the tax dues and had filed the relevant GSTR-3B returns, supporting the explanation that the mismatch arose from an inadvertent filing error. As the revenue interest was treated as secured at that stage, the assessee was entitled to a further opportunity to contest the mismatch on merits after a reply opportunity and personal hearing.

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Issues: Whether the assessment order, insofar as it related to the reverse charge mechanism liability mismatch, was liable to be set aside for reconsideration after affording a reasonable opportunity of hearing.

Analysis: The petitioner produced material showing that the tax dues relating to the GSTR-3B and GSTR-1 difference had already been paid, and also placed the relevant GSTR-3B returns to support the claim that the reverse charge mechanism mismatch arose from an inadvertent filing error. In those circumstances, the revenue interest was treated as secured at that stage, and the petitioner was held entitled to a further opportunity to contest the RCM mismatch on merits.

Conclusion: The assessment order was set aside to the extent it dealt with the RCM liability mismatch, and the matter was remanded for fresh consideration after granting the petitioner a reply opportunity and personal hearing.

Ratio Decidendi: Where the assessee shows a plausible inadvertent error and the revenue interest stands secured, the matter may be remanded for fresh adjudication after affording a reasonable opportunity and personal hearing.

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