Right to be heard restored: ex parte GST assessment remitted for fresh adjudication subject to verification and compliance.

Ex parte GST assessment was remitted for fresh adjudication because the order was passed without the petitioner's reply and disputed tax was recovered from the Electronic Liability Ledger; the authority must verify ledger recovery and afford the petitioner thirty days to file a reply with documents, after which a final order on merits shall be passed expeditiously. Conditional relief to vacate any bank attachment is granted if recovery verification shows removal and there are no other arrears for other periods; failure to comply permits the authority to proceed as if the petition were dismissed.

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Issues: Whether the impugned ex parte assessment order dated 31.05.2023 confirming demand in Form GST DRC-01 dated 24.01.2023 should be set aside/remitted for fresh adjudication in view of recovery from the Electronic Liability Ledger and the petitioner's entitlement to an opportunity to file reply and substantiate defence.

Analysis: The Court noted that the impugned assessment order was passed ex parte in absence of the petitioner's reply to the show cause notice. The record indicates that the disputed tax and penalty were recovered from the petitioner's Electronic Liability Ledger on 04.03.2024. In these circumstances the Court exercised its supervisory jurisdiction to restore the opportunity of hearing by remitting the matter to the assessing authority for a fresh decision on merits, subject to the petitioner filing a reply with supporting documents within thirty days and subject to the authority verifying whether recovery from the electronic ledger has indeed taken place. The Court directed that, if the petitioner complies, the authority shall pass a final order on merits expeditiously, and any bank attachment shall stand vacated provided there are no other arrears for other tax periods; conversely, non-compliance permits the authority to proceed as if the writ petition were dismissed.

Conclusion: The impugned ex parte assessment order is remitted to the respondent for fresh adjudication on merits after affording the petitioner the stipulated opportunity to file a reply and produce documents. Conditional relief (vacation of bank attachment) is granted subject to compliance and verification of recovery.

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