Natural justice in GST assessment led to remand after the taxpayer was denied a hearing and given an opportunity to contest the demand.

An assessment order based on comparison of taxable supplies in returns and the annual statement was set aside for breach of natural justice because the taxpayer had not been heard before confirmation and no objections had been considered. The Madras HC remanded the matter for fresh assessment after receipt of the taxpayer's reply and a reasonable opportunity, including personal hearing. The remand was made conditional on payment of 10% of the disputed tax demand, enabling the taxpayer to contest the demand on merits.

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Issues: Whether the assessment order was liable to be set aside for breach of natural justice and the matter remitted for fresh consideration after granting an opportunity of hearing.

Analysis: The impugned assessment was based on a comparison of taxable supplies in the returns and annual statement, and was confirmed on the footing that no objections were filed. The petitioner's GST registration had been cancelled, and the Court accepted that the petitioner had not been heard before the order was passed. In these circumstances, the Court found it just to afford the petitioner an opportunity to contest the tax demand on merits, while requiring payment of 10% of the disputed demand as a condition for remand.

Conclusion: The assessment order was set aside and the matter was remanded for fresh consideration after receipt of the petitioner's reply, compliance with the condition of remitting 10% of the disputed tax demand, and grant of a reasonable opportunity, including personal hearing.

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