Natural justice in GST assessment: demand set aside and matter remitted after opportunity to contest return discrepancies.

Assessment orders confirming GST demand for 2017-2018 were quashed for breach of natural justice because the impugned order rested mainly on the taxpayer's non-response to the intimation and show cause notice, without independent reasons addressing the return discrepancies in GSTR 3B, GSTR 1 and GSTR 9. The taxpayer was held entitled to contest the demand on merits. The matter was remitted for fresh consideration subject to payment of 10% of the disputed tax demand, and the authority was directed to grant a reasonable opportunity, including personal hearing, before passing fresh orders.

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Issues: Whether the assessment orders confirming the tax demand for the assessment period 2017-2018 were liable to be quashed for breach of natural justice and whether the matter should be remitted for fresh consideration.

Analysis: The orders were passed after the petitioner did not respond to the intimation or the show cause notice. The discrepancy between the GSTR 3B, GSTR 1 and GSTR 9 returns formed the basis for the demand, but the impugned order did not contain independent reasons supporting the confirmation apart from the failure to reply. In the circumstances, the petitioner was held entitled to an opportunity to contest the demand on merits, subject to terms.

Conclusion: The impugned orders were quashed subject to payment of 10% of the disputed tax demand, and the respondent was directed to afford a reasonable opportunity, including personal hearing, and pass fresh orders.

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