GST assessment ignoring taxpayer's DRC-06 reply to show-cause notice set aside; reassessment ordered with 50% pre-deposit condition.

In a writ challenging an assessment order under s.73 of the TNGST Act, 2017 confirming CGST/SGST demand with interest and penalty, the dominant issue was whether the assessing authority vitiated the determination by failing to consider the taxpayer's reply (DRC-06) to the show cause notice. The HC held that non-consideration of the reply breached the requirement of a merits-based adjudication consistent with principles of natural justice; consequently, the impugned order was set aside and the matter remitted for de novo determination, subject to the taxpayer depositing 50% of the disputed tax within 30 days, with any recovered tax to be adjusted toward the pre-deposit.

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Challenge to an order dated 02.07.2024 in DRC-07 for AY 2020-2021 passed under Section 73 of the TNGST Act, 2017 confirming SGST and CGST demands (tax Rs. 5,80,216; interest Rs. 4,52,090; penalty Rs. 58,020; total Rs. 10,90,326). It was contended that the interest demanded had already been paid, though this was not confirmed. The matter was remitted because the reply in DRC-06 dated 01.02.2023 to the Show Cause Notice "has not been considered," requiring a fresh order on merits. Remand was made "subject to the petitioner pre-depositing 50% of the disputed tax within a period of thirty (30) days," with any prior recovery to be adjusted toward such pre-deposit. The petitioner must participate and cooperate in de novo assessment. Upon compliance, final orders are to be passed on merits "preferably within a period of three (3) months," and the bank account attachment "shall stand automatically raised/vacated." Non-compliance permits recovery "as if this Writ Petition had been dismissed in limine today."

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