Notice is mandatory before enhancing rectified tax demand; enhanced IGST liability was remitted for fresh consideration.

An enhancement of IGST demand in rectification proceedings without notice to the assessee was treated as procedurally unsustainable. The court noted that while the CGST and SGST demands had been reduced under rectification, the IGST component was increased without affording the petitioner an opportunity to respond. The matter was remitted for fresh consideration limited to the enhanced IGST demand, with liberty to the petitioner to challenge any confirmed demand thereafter. Interim protection against further recovery was also continued, preserving the petitioner's position pending reconsideration.

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Issues: Whether the increase in the IGST demand in the rectification order, without notice to the assessee, required reconsideration.

Analysis: The assessment had been made under Section 73 of the GST enactments, and the demand was later reduced in rectification proceedings under Section 161. However, while the CGST and SGST demand was reduced, the IGST component was enhanced from Rs.1,87,866/- to Rs.2,25,969/- without notice to the petitioner. In view of the absence of notice on the enhanced IGST liability, the matter required reconsideration limited to that aspect.

Conclusion: The issue of enhancement of IGST demand was remitted to the respondent for fresh consideration, with liberty to the petitioner to challenge any confirmed demand thereafter.

Final Conclusion: The writ petition was disposed of with a limited remand confined to the enhanced IGST demand, while the petitioner was protected by interim directions regarding further recovery.

Ratio Decidendi: An enhancement of tax demand in rectification proceedings cannot be sustained without affording notice to the affected assessee, and such enhancement is liable to be reconsidered on remand.

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