Natural justice in GST assessment requires a real opportunity to reply and be heard before demand is finalised.

Mismatch between GSTR 3B returns and auto-populated GSTR 2A led to an assessment order, but the taxpayer had not effectively responded to the show cause notice because it was uploaded under the GST portal tab for additional notices and orders. As part of the demand had already been appropriated from the bank account and electronic credit ledger, the Court considered that a further opportunity to contest the demand on merits was necessary. The assessment order was set aside and the matter remanded for fresh consideration with directions to allow a reply, grant a personal hearing, and pass a new order.

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Issues: Whether the assessment order was liable to be set aside for want of a reasonable opportunity to contest the tax demand, and whether the matter required remand for fresh consideration.

Analysis: The impugned assessment arose from a mismatch between the GSTR 3B returns and the auto-populated GSTR 2A. The petitioner did not respond to the show cause notice, as it had been uploaded in the GST portal tab for additional notices and orders. The record also indicated that part of the demand had already been appropriated from the bank account and the electronic credit ledger. In these circumstances, a further opportunity to submit a reply and contest the demand on merits was found necessary.

Conclusion: The assessment order was set aside and the matter was remanded for reconsideration with a direction to permit the petitioner to file a reply, afford a personal hearing, and pass a fresh order.

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