Effective opportunity in GST assessment leads to conditional remand for fresh adjudication on the taxpayer's reply and hearing.

An assessment confirming tax and imposing 100% penalty was interfered with because the taxpayer was denied an effective opportunity to respond to the intimation and show cause notice, including due to portal access difficulties. The dispute concerned input tax credit on a motor vehicle under Section 17(5) of the GST enactments, but the court did not decide the merits of the credit claim. Instead, it set aside the assessment conditionally, required deposit of 10% of the disputed demand, and remitted the matter for fresh adjudication after permitting a reply and granting a reasonable opportunity, including personal hearing.

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Issues: Whether the assessment order confirming tax and imposing 100% penalty was liable to be set aside for want of an effective opportunity of hearing, and whether the matter should be remitted for fresh assessment on conditions.

Analysis: The petitioner's case was that he could not respond to the intimation and show cause notice due to portal access difficulties. The assessment had resulted in confirmation of tax and imposition of 100% penalty without the petitioner participating on merits. The dispute related to availment of input tax credit in respect of a motor vehicle, with reference to the restriction under Section 17(5) of the GST enactments. In these circumstances, the denial of a substantive opportunity warranted interference, but the petitioner was required to be put on terms.

Conclusion: The assessment order was set aside conditionally. The petitioner was directed to remit 10% of the disputed tax demand within the stipulated period and was permitted to file a reply, after which the respondent was to grant a reasonable opportunity, including personal hearing, and pass a fresh assessment order.

Final Conclusion: The writ petition was disposed of by remitting the matter for fresh adjudication after granting the petitioner an opportunity to contest the tax proposal on merits, subject to deposit of 10% of the disputed demand.

Ratio Decidendi: Where a tax assessment is completed without an effective opportunity to respond to the show cause proceedings, the order may be set aside and the matter remitted for fresh consideration, subject to reasonable conditions.

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