Tax assessment on GSTR mismatch was set aside for fresh consideration, subject to partial pre-deposit and hearing.
In a tax assessment under Section 73 based on a GSTR-1 and GSTR-3B mismatch, the Court treated the disputed receipt of notice and alleged denial of effective hearing as sufficient to interfere with the order. To ensure fair adjudication and consistency with a similar matter, it set aside the assessment and directed a fresh consideration on condition that the petitioner first pay 10% of the demand. The petitioner was then to file objections, after which fresh notice, a personal hearing, and a speaking order were to follow.
Issues: Whether the assessment order passed under Section 73 could be set aside and the matter remanded for fresh consideration on the ground of non-receipt of notice and denial of an effective opportunity of hearing.
Analysis: The impugned proceedings imposed liability towards tax, interest and penalty on the basis of an alleged mismatch between the figures reflected in GSTR-1 and GSTR-3B. The petitioner asserted that the proceedings were not properly communicated and that the defence on merits had supporting documents. The Court noted that notice had been issued, but the petitioner claimed non-receipt, and it considered that a similar matter had recently been dealt with by granting an opportunity on terms. To maintain consistency and to ensure a fair adjudication, the Court deemed it appropriate to interfere with the order and require the petitioner to comply with a partial pre-deposit before seeking a fresh opportunity.
Conclusion: The assessment order was set aside and the matter was remanded for fresh consideration, subject to the petitioner paying 10% of the demand and then filing objections, after which a fresh notice, personal hearing, and a speaking order were to follow.
Final Conclusion: The petitioner obtained a conditional remand and a fresh adjudication opportunity, while the original demand order was not sustained in its present form.
Ratio Decidendi: Where the record indicates a disputed opportunity of hearing in a tax assessment and the case warrants consistent treatment, the order may be set aside and remitted for fresh consideration on conditions securing balanced procedural fairness.
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AI Drafter ✕
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