GST assessment remanded for fresh consideration after non-response to notice, with partial tax deposit and reply required before rehearing.

Where an assessee did not respond to the show cause notice before a GST assessment order, the Madras HC followed its consistent approach of remitting the matter for fresh consideration rather than sustaining the order without hearing on merits. The Court noted that rectification under Section 161 of the CGST Act had failed, but directed a fresh adjudication after balancing the interests of both sides. The petitioner was required to deposit 25% of the disputed tax in cash and file a reply with supporting documents before the respondent passed a fresh order after hearing the petitioner.

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Issues: Whether the impugned assessment order and the rejection of rectification warranted interference and remand for fresh consideration, subject to payment of part of the disputed tax and filing of a reply to the show cause notice.

Analysis: The petitioner had not responded to the show cause notice preceding the assessment order, and the attempt to invoke rectification under Section 161 of the Central Goods and Services Tax Act, 2017 had failed. The Court followed its consistent view in similar matters that, where the assessee had not earlier responded, the proper course was to remit the matter for a fresh order while balancing the interests of the assessee and the Revenue. The Court also required deposit of 25% of the disputed tax in cash and filing of a reply with supporting documents before fresh adjudication.

Conclusion: The matter was remitted to the respondent for fresh consideration, subject to the stipulated deposit and filing of reply, with the petitioner to be heard before any fresh order is passed.

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