GST demand based on GSTR-3B and GSTR-2A mismatch was conditionally quashed for lack of personal hearing.

An assessment order confirming a GST demand based on discrepancies between GSTR-3B and auto-populated GSTR-2A was conditionally quashed because the taxpayer had not been afforded a personal hearing before confirmation. The Court balanced merits review with procedural fairness by directing payment of 10% of the disputed demand, permitting a reply to the show cause notice, and requiring a fresh assessment after giving a reasonable opportunity and personal hearing. The matter was remitted for reconsideration on that basis.

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Issues: Whether the assessment order confirming GST demand, passed without affording the petitioner a hearing, should be quashed and the matter remitted for fresh consideration.

Analysis: The demand arose from discrepancies between the petitioner's GSTR 3B return and the auto-populated GSTR 2A return. The order had been preceded by intimation and show cause notice, but the petitioner was not heard before confirmation of the demand. To balance the need for adjudication on merits with the petitioner's request for an opportunity to contest the demand, the Court interfered with the assessment order on terms, requiring payment of 10% of the disputed demand and permitting a reply to the show cause notice, followed by a fresh assessment after a reasonable opportunity and personal hearing.

Conclusion: The assessment order was quashed conditionally and the matter was remitted for fresh assessment after compliance with the stipulated terms, in favour of the petitioner.

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