GST demand challenge for want of hearing allowed to be reopened on conditions, with fresh consideration on merits.

A GST demand arising from a mismatch between GSTR-3B returns and auto-populated GSTR-2A was challenged on the ground of inadequate notice and denial of effective hearing because communications were uploaded only on the GST portal. The HC found the matter fit for a merits-based reconsideration in light of the petitioner's willingness to comply with conditions, and set aside the impugned order conditionally. The petitioner was permitted to file a reply on remitting 10% of the disputed tax demand, and the respondent was directed to grant a reasonable opportunity, including personal hearing, before passing a fresh order.

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Issues: Whether the impugned tax order deserved to be set aside for want of a reasonable opportunity of hearing, and whether the petitioner should be permitted to contest the tax demand on merits upon compliance with conditions.

Analysis: The order recorded that the dispute arose from a mismatch between the petitioner's GSTR-3B returns and the auto-populated GSTR-2A. The petitioner asserted lack of effective notice because the communications were uploaded only on the GST portal, while the respondent relied on the intimation, show cause notice and personal hearing notices already issued. In the circumstances, and in view of the petitioner's willingness to make a partial deposit and file a reply, the matter was treated as fit for granting an opportunity to contest the demand on merits.

Conclusion: The impugned order was set aside conditionally, the petitioner was permitted to file a reply upon remitting 10% of the disputed tax demand, and the respondent was directed to afford a reasonable opportunity including personal hearing and pass a fresh order.

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