Natural justice in GST assessment led to remand, with proceedings restored to notice stage on a pre-deposit condition.
An assessment made after a GST audit was challenged for breach of natural justice, and the Court accepted that the dealer should receive one further opportunity to object. On that basis, the impugned assessment order and consequential demand were set aside, and the proceedings were restored to the show cause notice stage for fresh adjudication. The remand was made subject to a pre-deposit condition of 10% of the disputed tax, with amounts already paid to be adjusted, and with directions for filing objections and further consideration.
Issues: Whether the impugned GST assessment order required interference on the ground of breach of natural justice, and whether the matter should be remitted for fresh consideration on the condition of payment of 10% of the disputed tax.
Analysis: The assessment arose from an audit under Section 65 of the Tamil Nadu Goods and Services Tax Act, 2017, and the order confirmed only certain discrepancies while dropping others. The writ petition was founded on denial of a fair opportunity, and the Court proceeded on consent of both sides to grant one further opportunity to the dealer to raise objections. In the circumstances, the impugned order and consequential demand were set aside, the matter was to proceed from the stage of show cause notice, and the petitioner was directed to deposit 10% of the disputed tax within the stipulated time, with adjustment of amounts already paid.
Conclusion: The impugned order was interfered with and the matter was remitted for fresh adjudication, subject to payment of 10% of the disputed tax and compliance with the directions for filing objections and further consideration.
Ratio Decidendi: Where an assessment is challenged on natural justice grounds and the Court grants a further opportunity to contest the proposal, the impugned order may be set aside and the proceedings restored to the notice stage subject to a reasonable pre-deposit condition.
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