Non-consideration of reply and reconciliation led to remand for fresh tax adjudication, subject to partial deposit.

An assessment order confirming tax liability was set aside because the authority failed to properly consider the taxpayer's reply and reconciliation, including the specific reverse charge mechanism adjustment raised in the record. The High Court held that the rejection of the explanation as vague and untrustworthy, without addressing the material reconciliation aspects, justified fresh adjudication. The matter was remitted for reconsideration, with liberty to file an additional reply and supporting documents, and with a reasonable opportunity and personal hearing before a fresh order. The petitioner was directed to remit 10% of the disputed tax demand within the stipulated time as a condition for remand.

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Issues: Whether the order confirming tax liability was liable to be set aside for non-consideration of the petitioner's reply and the reconciliation, and whether the matter should be remitted for fresh consideration.

Analysis: The reply was on record, but the assessing authority treated it as vague and untrustworthy without dealing with the specific RCM adjustment referred to by the petitioner. Since the reconciliation aspects were not properly considered, fresh adjudication was warranted. The Court also put the petitioner on terms by requiring payment of 10% of the disputed tax demand and permitted an additional reply with supporting documents, followed by a reasonable opportunity and personal hearing before a fresh order was passed.

Conclusion: The impugned order was set aside and the matter was remitted for fresh consideration, subject to the petitioner remitting 10% of the disputed tax demand within the stipulated time.

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