Ex parte GST adjudication set aside where bona fide non-response prevented a hearing on the merits.

An ex parte GST adjudication confirming demand was set aside because the taxpayer had not filed a reply to the show-cause notice for a plausible, bona fide reason, namely that the notice had not been noticed on the GST portal. The court adopted a justice-oriented approach and held that refusing an opportunity to respond would prejudice the taxpayer. The proceedings were remitted for fresh adjudication from the stage of filing the reply, so the taxpayer could contest the matter on merits and be heard before final determination.

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Issues: Whether the ex parte adjudication order confirming the GST demand should be set aside and the matter remitted for fresh consideration from the stage of filing reply to the show-cause notice.

Analysis: The petitioner had not filed a reply to the show-cause notice, resulting in an ex parte adjudication. The explanation offered was that the notice had not been noticed on the GST portal and that the omission was bona fide. In these circumstances, the refusal to grant an opportunity to respond would prejudice the petitioner. A justice-oriented approach warranted restoration of the proceedings so that the petitioner could file a reply and contest the matter on merits.

Conclusion: The impugned adjudication order was set aside and the matter was remitted for fresh adjudication from the stage of the petitioner submitting a reply to the show-cause notice.

Final Conclusion: The demand order did not survive and the proceedings were restored for reconsideration in accordance with law after affording the petitioner an opportunity to participate.

Ratio Decidendi: Where an ex parte tax adjudication has resulted from non-filing of reply for a plausible cause, the proceeding may be set aside and remanded to ensure a fair opportunity of hearing before final determination.

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