Natural justice in GST assessment: portal service accepted, but quashing and reconsideration ordered with conditional opportunity to contest demand.

An assessment order was quashed for breach of natural justice where GST notices and hearing intimation were uploaded on the portal, but the assessee had not effectively participated and was unable to place material supporting the genuineness of purchases and challenge to reversal of input tax credit. To balance the assessee's opportunity to contest the demand with the revenue's interest, the court directed reconsideration only after payment of 10% of the disputed tax demand, filing of a reply, and grant of a reasonable opportunity, including personal hearing, followed by a fresh assessment order.

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Issues: Whether the impugned assessment order was liable to be quashed for breach of natural justice and, if so, whether relief should be granted on terms to enable the petitioner to contest the tax demand.

Analysis: The petitioner asserted non-service of the intimation and show cause notice, while the revenue relied on portal-based service of the statutory notices and hearing intimation. The record indicated that notices had been uploaded on the GST portal, but the petitioner had not participated in the proceedings and had therefore been unable to place documents in support of the genuineness of the purchases and the contest to reversal of input tax credit. In these circumstances, the need to balance the petitioner's opportunity to contest the demand with the revenue's interest was recognised, and relief was made conditional on payment of a portion of the disputed tax demand.

Conclusion: The impugned order was quashed and the matter was directed to be reconsidered after the petitioner remitted 10% of the disputed tax demand, submitted a reply, and was afforded a reasonable opportunity including personal hearing; a fresh assessment order was to be passed thereafter.

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