Natural justice in GST assessment: denial of personal hearing led to setting aside the order and lifting bank attachment.

Denial of a personal hearing, where the assessee's reply was not filed due to ineffective notice, was treated as a breach of natural justice under the GST assessment process. The Madras HC examined the matter with reference to Rule 86B of the Tamil Nadu Goods and Services Tax Rules, 2017 and the claimed exception, and held that the assessment order could not stand without affording hearing. Once the order was set aside and remanded for fresh consideration, the bank attachment resting on that order also could not survive and was lifted in favour of the assessee.

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Issues: Whether the impugned order was liable to be set aside for denial of personal hearing and whether the consequential bank attachment could survive.

Analysis: The petitioner's case was examined with reference to Rule 86B of the Tamil Nadu Goods and Services Tax Rules, 2017 and the exception claimed thereunder. The order was passed without affording a personal hearing, even though the petitioner's reply was not filed due to lack of effective notice of the proceedings. The absence of a hearing amounted to a violation of the principles of natural justice. Once the assessment order was set aside and the matter was remanded for fresh consideration, the bank attachment based on that order could not continue.

Conclusion: The impugned order was set aside, the matter was remanded for fresh consideration, and the bank attachment was lifted. The relief was in favour of the assessee.

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