Validity of assessment under section 63 quashed for lack of hearing; remanded with 15-day reply and 10% deposit

Assessment under section 63 was set aside because the authority failed to afford audi alteram partem; the impugned orders were quashed and the matter remanded for a fresh speaking order after affording an opportunity to be heard. The petitioner is granted fifteen days to respond to the show-cause notice and, following receipt of that response and any hearing, the authority must pass a reasoned decision. As an interim condition, the petitioner must deposit 10% of the assessed tax. The disposal is by consent and expressly not to be treated as precedent.

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Issues: (i) Whether the assessment order dated 22.12.2023 passed under Section 63 of the GST Act, 2017 is liable to be quashed on grounds including lack of opportunity of hearing and related jurisdictional/format defects; (ii) Whether the appellate order dated 15.10.2025 dismissing the appeal as time-barred is liable to be quashed and the matter remanded for fresh consideration.

Issue (i): Whether the assessment order dated 22.12.2023 under Section 63 of the GST Act, 2017 is vitiated for want of opportunity of hearing and other procedural defects and requires quashing and remand.

Analysis: The order dated 22.12.2023 was examined on the basis of representations and the parties' agreement that opportunity of hearing was not afforded and that procedural/formatting issues existed in the assessment process. In light of the respondents' concession to afford hearing and to pass a fresh speaking order, the appropriate remedy is quashing of the impugned order and directing fresh adjudication after allowing the assessee to respond.

Conclusion: The assessment order dated 22.12.2023 is quashed. The assessee is granted time to respond to the show-cause notice and a fresh speaking order shall be passed after providing opportunity of hearing.

Issue (ii): Whether the appellate order dated 15.10.2025 rejecting the appeal on the ground of limitation should be quashed and the appeal restored for fresh consideration.

Analysis: The appellate order dismissing the appeal as time-barred was considered in conjunction with the procedural defects in the assessment and the fact that the assessee's appeal could not be uploaded on the portal. Given the consent of parties that respondents will allow hearing and pass fresh order, the appellate order that flows from the impugned assessment is also quashed to enable effective appellate remedy after fresh adjudication at first instance.

Conclusion: The appellate order dated 15.10.2025 is quashed and the matter is remitted to enable fresh adjudication and, if necessary, restoration of the appeal process after the fresh order.

Final Conclusion: The impugned assessment and appellate orders are quashed and matter remitted for fresh decision, subject to the assessee being granted an opportunity to respond and making an interim deposit of 10% of the disputed tax demand; the order is passed on the basis of parties' consent and peculiar facts and is not to be treated as precedent.

Ratio Decidendi: Where an assessment or appellate order is rendered without affording the assessee an opportunity of hearing or is affected by procedural defects that impede effective appellate remedy, the appropriate relief is quashing of the impugned orders and remand for fresh speaking adjudication after providing opportunity of hearing, subject to appropriate interim conditions.

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