Natural justice in GST assessment restored opportunity to contest demand, with conditional payment safeguard for revenue.

GST assessment confirmed for non-filing of reply and non-attendance at hearing was conditionally set aside on natural justice grounds. The Court accepted the taxpayer's claim that the proceedings had not been effectively brought to its notice because compliance was handled by a consultant, and held that the taxpayer should be given an opportunity to contest the demand on merits. To safeguard revenue, the Court directed verification of the alleged bank-account appropriation and required payment of 10% of the disputed demand if such appropriation was not verified. The assessing officer was directed to consider the reply, grant a personal hearing, and pass a fresh order after compliance.

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Issues: Whether the assessment order confirming GST demand was liable to be set aside for breach of natural justice and whether conditional relief could be granted to safeguard revenue.

Analysis: The assessment was confirmed because no reply was filed to the show cause notice and no personal hearing was attended. The petitioner asserted that GST proceedings were not brought to its notice because compliances had been entrusted to a consultant, and also stated that an amount had already been appropriated from its bank account. In view of the asserted lack of participation, the Court held that justice required an opportunity to contest the demand on merits, while protecting revenue by recognising the alleged appropriation and directing payment of 10% of the disputed demand if such appropriation was not verified.

Conclusion: The assessment order was set aside conditionally, the petitioner was granted an opportunity to file a reply and obtain a personal hearing, and the assessing officer was directed to pass a fresh order after verification and receipt of the requisite amount.

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