Effective communication of GST notices required; assessment set aside and remitted for fresh hearing with partial deposit condition.

An assessment based on non-response to a show cause notice was set aside because the assessee claimed the notices and order were communicated only through the GST portal and it had no effective opportunity to contest the tax demand. The HC held that, in view of the alleged lack of effective communication and participation, the matter required reconsideration with an opportunity to file a reply and be heard. The assessment was remitted for fresh consideration subject to payment of 10% of the disputed tax demand as a condition for restoration.

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Issues: Whether the assessment order could be sustained when the petitioner asserted that the notices and order were not effectively communicated, resulting in denial of opportunity to contest the tax demand on merits.

Analysis: The impugned assessment was founded on the petitioner's non-response to the show cause notice. The petitioner maintained that the proceedings were not known to it because the notices and order were uploaded only on the GST portal. In view of the stated lack of effective participation, the matter warranted reconsideration so that the petitioner could file a reply and contest the tax proposals, subject to payment of a part of the disputed demand as a condition for restoration.

Conclusion: The assessment order was set aside and the matter was remitted for fresh consideration after giving the petitioner an opportunity to reply and a personal hearing, on condition of payment of 10% of the disputed tax demand.

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