Reversal of wrongly availed input tax credit and denial of reply opportunity justified quashing of the GST assessment order.

Wrongly availed input tax credit was reversed in GSTR-3B within the same assessment year, and the assessment order levying tax, interest and penalty was passed without a reply to the show-cause notice. In these circumstances, the Madras High Court held that the matter required reconsideration on merits after giving the taxpayer an opportunity to explain the case. The impugned GST order was quashed and the matter remitted for fresh disposal, with liberty to file a reply within the stipulated time.

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Issues: Whether the impugned GST assessment order levying tax, interest and penalty for wrong availment of input tax credit was liable to be quashed and the matter remitted for fresh consideration after the credit had been reversed and no reply had been filed to the show-cause notice.

Analysis: The petitioner had reversed the wrongly availed input tax credit in GSTR-3B within the same assessment year. The order was passed without the petitioner having replied to the show-cause notice. In these circumstances, the petitioner was held entitled to an to explain the case, and the matter warranted reconsideration on merits.

Conclusion: The impugned order was quashed and the matter was remitted to the respondents for fresh disposal after granting the petitioner an opportunity to file a reply within the stipulated time.

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