Input tax credit mismatch dispute remanded for fresh consideration after denial of effective opportunity to respond.

An assessment under Section 73 of the GST Act based on an alleged input tax credit mismatch was set aside and remanded because the assessee had not been given an effective opportunity to contest the discrepancy. The Court noted that the dispute arose from scrutiny of GSTR-3B and GSTR-2A returns, and that the assessee claimed supporting records showed no mismatch and that the notice had not been effectively received. Finding a plausible defence, the Court ordered fresh consideration subject to payment of 10% of the disputed tax within four weeks, filing of a reply with supporting documents, issuance of fresh notice, personal hearing, and a fresh order within the stipulated time.

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Issues: Whether the assessment order passed under Section 73 of the GST Act was liable to be set aside and the matter remanded for fresh consideration on the ground that the petitioner was denied an effective opportunity to contest the alleged input tax credit mismatch.

Analysis: The order impugned before the Court was based on scrutiny of the petitioner's GSTR-3B and GSTR-2A returns for the financial year 2017-2018, which led to a finding of excess input tax credit and consequential demand, including interest and penalty. The petitioner asserted that the notice had not been effectively received and that supporting documents were available to establish that there was no mismatch between the returns. Noting the existence of a plausible defence and relying on consistency with an earlier similar case, the Court considered it appropriate to afford the petitioner an opportunity to respond on terms.

Conclusion: The impugned order was set aside and the matter was remanded for fresh consideration, subject to payment of 10% of the disputed tax amount within four weeks and filing of reply with supporting documents thereafter, followed by fresh notice, personal hearing, and a new order within the stipulated time.

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