Turnover mismatch assessment set aside conditionally, with remand for fresh adjudication after reply, partial payment, and hearing.

An assessment based on a mismatch between turnover reported in GSTR-3B returns and the income tax return was set aside because the taxpayer claimed the show cause notice had not been effectively brought to his attention. Although the department relied on e-mail communication and multiple hearing notices, the court found that the matter should be reconsidered on merits with a fair opportunity to respond. The order was remitted for fresh adjudication after the taxpayer files a reply, pays 10% of the disputed tax demand, and is granted a reasonable opportunity, including personal hearing.

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Issues: Whether the assessment order based on mismatch between the turnover disclosed in GSTR-3B returns and the income tax return could be sustained when the petitioner claimed lack of effective opportunity, and whether the matter should be remanded for fresh consideration.

Analysis: The order under challenge proceeded on reconciliation of turnover between the income tax return and the GSTR-3B return and confirmed the tax proposal on the footing that no reply had been filed to the show cause notice. The petitioner asserted that the notices were not effectively brought to his attention, while the respondent pointed out e-mail communication and multiple hearing notices. In the circumstances, the matter warranted an opportunity to contest the demand on merits, with the petitioner being put on terms by requiring part payment of the disputed demand and a reply to the notice.

Conclusion: The impugned order was set aside conditionally, and the matter was remitted for fresh adjudication after reply, payment of 10% of the disputed tax demand, and grant of a reasonable opportunity including personal hearing.

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