Natural justice breach in GST assessment led to remand after a non-speaking order disallowed input tax credit.

An assessment order disallowing input tax credit was set aside because the rejection of the taxpayer's reply was a non-speaking order that failed to give reasons or address the objection regarding an inadvertent clerical entry in the return. The court treated this as a breach of natural justice and noted the taxpayer's plea for rectification under Section 161 of the Tamil Nadu Goods and Services Tax Act, 2017. The matter was remitted for reconsideration, and the petitioner was granted one final opportunity to appear before the authorities with supporting materials; if that opportunity is not used, the impugned order will revive.

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Issues: Whether the assessment order disallowing input tax credit was liable to be set aside for being a non-speaking order passed without considering the taxpayer's reply, and whether the petitioner was entitled to a further opportunity before the authorities.

Analysis: The order rejecting the reply contained no reasons and merely recorded non-satisfaction with the explanation offered by the petitioner regarding an inadvertent clerical entry in the return. Such a summary rejection, without dealing with the objection raised, was held to be in breach of the principles of natural justice. The plea that the error could be rectified under Section 161 of the Tamil Nadu Goods and Services Tax Act, 2017 was also noticed, and the matter was treated as one warranting reconsideration by the authority.

Conclusion: The impugned order was set aside and the petitioner was granted one final opportunity to appear before the respondent authorities with supporting materials; failure to avail that opportunity would result in revival of the impugned order.

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