GST assessment notice requirement under Section 142(1)(A) held essential; demand order set aside and remanded for fresh assessment.

For the pre-amendment GST assessment period, the Andhra Pradesh High Court held that absence of the notice contemplated by Section 142(1)(A) before commencement of assessment proceedings vitiated the demand process. The challenge arose from a demand order covering reversal of input tax credit, tax, interest and penalty, and it was undisputed that no such notice had been served. Following its earlier decisions, the Court set aside the demand order and remanded the matter to the assessing authority for fresh assessment under the GST law and rules.

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Issues: Whether the demand order under the GST regime was liable to be set aside for non-issuance of notice under Section 142(1)(A) of the Central Goods and Services Tax Act, 2017 for the relevant pre-amendment assessment period.

Analysis: The petitioner faced a demand order arising from proceedings for reversal of input tax credit, tax, interest and penalty. The challenge was founded, inter alia, on absence of the notice contemplated by Section 142(1)(A) before commencement of the assessment proceedings. The Court noted that it was not disputed that no such notice had been served prior to the assessment proceedings and followed its earlier decisions holding that, for periods prior to the amendment of Section 142(1)(A), absence of the prescribed notice vitiates the assessment process.

Conclusion: The demand order was set aside and the matter was remanded to the assessing authority for fresh assessment in accordance with the GST law and rules.

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