Conditional remand in GST credit note dispute: fresh adjudication ordered after deposit and hearing opportunity.

A GST assessment under section 73 concerning alleged non-reversal of input tax credit on credit notes was set aside conditionally after the Court accepted the plea for a further opportunity. The petitioner's grievance that the demand notice was not properly served and that portal access was unavailable was addressed by directing verification of amounts already remitted and requiring deposit of 25% of the disputed tax within the stipulated time. On compliance, the impugned order was to be treated as a show cause notice, the petitioner could file objections with supporting material, and the department was required to pass fresh orders after granting a reasonable hearing.

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Issues: Whether the assessment order passed under section 73 of the GST enactments was liable to be set aside for grant of a fresh opportunity and whether the petitioner could be directed to deposit 25% of the disputed tax as a condition for restoration of the adjudication process.

Analysis: The dispute arose from a demand raised on alleged non-reversal of input tax credit relating to credit notes. The petitioner asserted that the demand and notice were not properly served and that it could not access the common portal to participate in the proceedings. The Court accepted the request for one more opportunity, balanced the rival interests by directing verification of the amount already remitted, and required the petitioner to deposit 25% of the disputed tax within the stipulated time. It further directed that, on compliance, the impugned order would be treated as a show cause notice and the petitioner could file objections with supporting materials, after which the respondents were to pass fresh orders in accordance with law after giving a reasonable opportunity of hearing.

Conclusion: The assessment order was set aside conditionally, the matter was remitted for fresh adjudication after compliance with the deposit requirement, and the petitioner was granted an opportunity to contest the demand on merits.

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