GST exemption claim requires proper consideration before assessment is confirmed; matter remanded for fresh adjudication.

An assessment under GST was set aside because the assessing officer did not deal with the taxpayer's exemption claim before confirming tax liability. The record showed reliance on an exemption notification and a reply to the show cause notice, but the supporting documents needed to verify the exempt nature of the services were not properly placed before the officer. The High Court therefore interfered on that limited ground and remanded the matter for fresh adjudication, subject to deposit of 10% of the disputed demand and production of additional documents. The taxpayer is to receive a fresh assessment after reasonable opportunity, including a personal hearing.

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Issues: Whether the assessment order was liable to be quashed for non-consideration of the claimed GST exemption and the matter remanded for fresh adjudication.

Analysis: The petitioner relied on the exemption notification and the reply to the show cause notice to contend that the services were not taxable. The reply, however, did not show that supporting documents were filed, and the assessing officer could not properly verify the exempt nature of the services on the material then available. Even so, the assessment was confirmed without dealing with the exemption contention. On that limited ground, the order required interference, but only on terms.

Conclusion: The assessment order was quashed and the matter was remanded, subject to deposit of 10% of the disputed tax demand and production of additional documents, after which a fresh assessment was to be made affording reasonable opportunity, including a personal hearing.

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