Natural justice in GST assessment upheld with remand for fresh hearing subject to a conditional deposit.

The Madras HC held that where the taxpayer had not effectively participated and the notices and order were communicated only through the GST portal, denial of a meaningful opportunity justified setting aside the assessment. The matter was remanded for fresh adjudication after the taxpayer was given time to file a reply and a personal hearing, subject to deposit of 10% of the disputed tax demand within the stipulated period. The court balanced procedural fairness with revenue interests by making the remand conditional on partial payment before reconsideration.

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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 should be remanded on conditions.

Analysis: The petitioner did not participate in the proceedings leading to the impugned order, and the notices and orders were stated to have been uploaded only on the GST portal. In these circumstances, the denial of effective participation warranted grant of a further opportunity in the interest of justice. To balance that relief, the petitioner was required to remit 10% of the disputed tax demand within the stipulated time, after which a reply could be filed and a fresh adjudication made after providing a personal hearing.

Conclusion: The assessment order was set aside, the matter was remanded for fresh consideration, and the petitioner was granted relief subject to deposit of 10% of the disputed tax demand.

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