GST adjudication remand on conditional pre-deposit allowed after expiry of appeal period, with fresh hearing directed.

The Madras HC dealt with a GST adjudication order challenged after expiry of the appeal period. Taking note that the taxpayer had not used the personal hearing opportunity in the show cause proceedings, the Court considered it appropriate to interfere and remit the matter for fresh adjudication on merits. The remand was made conditional on the taxpayer depositing 10% of the disputed tax in cash and filing a reply with supporting documents, treating the impugned order as an addendum to the show cause notice. The bank attachment was directed to be vacated upon compliance.

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Issues: Whether the impugned GST adjudication order deserved to be interfered with and the matter remitted for fresh consideration, despite expiry of the appeal period, and whether such relief could be made subject to a pre-deposit of part of the disputed tax.

Analysis: The writ petition was entertained after the statutory appeal period had expired. The Court took note of the fact that the petitioner had not availed the personal hearing offered in the show cause proceedings and that, in similar cases, orders had been quashed and matters remitted on conditions linked to the delay in approaching the Court. To balance the interests of the assessee and the revenue, the Court considered it appropriate to remit the matter for fresh adjudication, while requiring the petitioner to deposit 10% of the disputed tax in cash and to file a reply with supporting documents treating the impugned order as an addendum to the show cause notice. The bank attachment was directed to stand vacated upon compliance.

Conclusion: The impugned order was not sustained in its existing form, and the matter was remitted for fresh decision on merits subject to the petitioner complying with the stipulated 10% pre-deposit and filing of reply.

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