Natural justice in GST assessment led to fresh adjudication after alleged non-service and conditional deposit requirement.

An assessment order was challenged for alleged non-service of notices and breach of natural justice because the documents were uploaded on the GST portal without effective notice. The Madras HC granted one further opportunity, set aside the assessment order, and directed fresh consideration by the adjudicating authority subject to deposit of 25% of the disputed tax. On compliance, the assessment was to be treated as a show cause notice, objections were to be heard afresh, and the bank attachment was to be lifted.

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Issues: Whether the assessment order was liable to be set aside for alleged non-service and violation of principles of natural justice, and whether the matter should be remanded for fresh consideration on deposit of a portion of the disputed tax.

Analysis: The assessment order was challenged on the ground that the notices and the impugned order had been uploaded in the GST portal and had not been effectively served, resulting in the petitioner not getting a meaningful opportunity to object. The Court accepted the request for one further opportunity, noted the absence of serious objection from the respondent, and adopted the course of setting aside the assessment order while requiring deposit of 25% of the disputed tax as a condition for revival of the proceedings before the adjudicating authority. On compliance, the impugned assessment was to be treated as a show cause notice and objections were to be considered afresh after hearing the petitioner.

Conclusion: The assessment order was set aside and the matter was sent back for fresh adjudication subject to deposit of 25% of the disputed tax, with consequential lifting of bank attachment upon compliance.

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