Natural justice in GST assessment allows fresh objections, subject to conditional deposit before the order is set aside

Assessment proceedings based on mismatch notices under GSTR-2A, GSTR-2B and GSTR-3B were challenged for want of proper opportunity, as the notices and assessment order were stated to have been uploaded only on the portal. The court accepted that the assessee should receive one final opportunity to file objections, but conditioned that relief on deposit of 25% of the disputed tax within the time granted. The assessment order was set aside subject to that compliance, with restoration of the order if the deposit condition was not met.

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Issues: Whether the assessment order was liable to be set aside for want of proper opportunity and the assessee could be granted a further opportunity to file objections on compliance with a deposit condition.

Analysis: The assessment arose from mismatch notices relating to GSTR-2A, GSTR-2B and GSTR-3B. The petitioner complained that the notices and the assessment order were only uploaded on the portal and that it could not participate in the proceedings. The respondent did not seriously oppose grant of one final opportunity. The Court accepted the request for further opportunity, while balancing it with a conditional deposit of part of the disputed tax.

Conclusion: The assessment order was set aside and the petitioner was permitted to file objections afresh on depositing 25% of the disputed tax within the time granted, failing which the assessment order would stand restored.

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