Violation of natural justice in bank attachment prompts remand and fresh adjudication after opportunity to reply provided

Finds breach of principles of natural justice where bank attachment occurred without adequate opportunity; directs that the impugned adjudication and subsequent order under the relevant goods and services laws be set aside and the matter remitted for fresh consideration from the stage of the taxpayer submitting a reply to the show cause notice, thereby granting an additional opportunity to be heard. The operative effect is remand for reconsideration in accordance with law and quashing of the earlier adjudication and appellate orders to the extent they were founded on the denial of opportunity.

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Issues: Whether the adjudication order passed under Section 73(9) and the appellate order under Section 107(1) should be set aside and the matter remitted for fresh consideration because the assessee was not afforded adequate opportunity to reply to the show-cause notice.

Analysis: The Court examined the consequence of proceedings under Section 73 of the GST legislation where a show-cause notice was issued but the assessee did not submit a reply. The Court applied the principle of audi alteram partem and considered whether the absence of adequate notice or opportunity to file a response constituted sufficient cause to nullify prior adjudication and appellate decisions. Having regard to the asserted bona fide inability to reply and the requirement that adjudicatory authorities provide reasonable opportunity to be heard before confirming demands or initiating recovery measures, the Court treated the fairness of the procedure as determinative and whether remand for fresh consideration is the appropriate remedy to cure any breach of natural justice.

Conclusion: The adjudication order under Section 73(9) and the appellate order under Section 107(1) are set aside and the matter is remitted to the adjudicating authority for fresh consideration from the stage of permitting the assessee to submit its reply, in favour of the assessee.

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