Reasonable opportunity of hearing under GST led to setting aside the demand and remand for fresh adjudication.

A tax demand under GST was set aside where the assessee was not given an effective opportunity to contest the matter on merits. Although a show cause notice had been issued and a personal hearing was stated to have been offered, the court noted that the GST registration had already been cancelled and the explanation that the portal was not being continuously monitored was not wholly untenable. In the interest of justice, the matter was remanded for reconsideration, with liberty to file a reply and a direction to provide a reasonable opportunity, including personal hearing, before a fresh order was passed.

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Issues: Whether the tax demand order was liable to be set aside for want of a reasonable opportunity of hearing, including compliance with the requirement of personal hearing under the GST law.

Analysis: The record showed that a show cause notice had been issued and that a personal hearing had been offered, but the petitioner's GST registration had already been cancelled and the petitioner's explanation that the GST portal was not being monitored continuously was not wholly untenable. In the circumstances, the interest of justice required that the petitioner be given an effective opportunity to contest the demand on merits, along with a fresh hearing after compliance with the directed deposit.

Conclusion: The impugned order was set aside and the matter was remanded for reconsideration, with permission to file a reply and with a direction to afford a reasonable opportunity, including personal hearing, before passing a fresh order.

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