Denial of opportunity in tax demand dispute led to remand for fresh adjudication after reply and partial deposit.

The assessment order was set aside for denial of a proper opportunity, as the impugned demand had been passed on the footing that no reply was filed to the show cause notice. The Court held that the petitioner should be allowed to contest the demand, including the claimed reverse charge treatment and the GSTR-1/GSTR-3B mismatch, and remanded the matter for fresh adjudication. Fresh consideration was made conditional on receipt of the reply, deposit of 10% of the disputed tax demand, and grant of a reasonable opportunity and personal hearing.

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Issues: Whether the assessment order was liable to be set aside for want of a proper opportunity and whether the matter should be remanded for fresh consideration on the petitioner's reply.

Analysis: The dispute arose from a tax demand said to be connected with a mismatch between GSTR-1 and GSTR-3B and the petitioner's claim that the supplies were liable to tax under the reverse charge mechanism. The Court noted that the impugned order had been passed on the footing that no reply was submitted to the show cause notice. In the interests of justice, it found that the petitioner should be given an opportunity to contest the demand, subject to compliance with a condition for remand.

Conclusion: The impugned order was set aside and the matter was remanded for fresh adjudication after receipt of the petitioner's reply and upon deposit of 10% of the disputed tax demand, with a reasonable opportunity and personal hearing to be granted.

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