Assessment without considering statutory reply may be quashed, subject to specified pre-deposit and fresh adjudication.

An assessment order issued without considering the assessee's reply to a statutory show cause notice was held vulnerable to quashing; the prescribed remedy is remittal for de novo adjudication provided the assessee makes a specified pre-deposit and files the requisite reply. The operative effect requires the assessee to deposit a portion of the disputed tax (excluding amounts already sustained on appeal) within the stipulated time and file a response to the show cause notice, after which any provisional attachment shall be vacated and the respondent must proceed to pass a final order expeditiously.

---

---

Issues: Whether the impugned assessment order dated 23.08.2024 (Assessment Year 2019-2020) passed in absence of a reply to the show cause notice is liable to be quashed and remitted for fresh adjudication subject to a condition of pre-deposit of a portion of the disputed tax.

Analysis: The impugned order was passed without the reply to the Show Cause Notice in Form GST DRC-01 dated 20.05.2024. A portion of the demand related to disputed input tax credit that had already been allowed by the Appellate Authority by order dated 16.12.2025 relying on Circular No.193/15/2023 dated 17.07.2023. The petitioner offered to pre-deposit fifty percent of the disputed tax (less the amount covered by the appellate order) to enable de novo adjudication. In similar precedents, orders passed in absence of a reply have been quashed and remitted with directions for fresh adjudication on merits subject to deposit of a specified portion of the disputed tax; compliance with stipulated conditions leads to vacation of provisional attachments and an opportunity for final adjudication.

Conclusion: The impugned assessment order dated 23.08.2024 is quashed and the matter is remitted for fresh adjudication on merits. Fresh adjudication is to be proceeded with only if the petitioner deposits 50% of the disputed tax (less the amount covered by the appellate order dated 16.12.2025) within thirty days and files a reply to the Show Cause Notice; on compliance, provisional attachment, if any, shall be vacated and respondent shall pass final order expeditiously.

Ratio Decidendi: Where an assessment order is passed without considering the reply to the statutory show cause proceedings and the assessee offers a pre-deposit, the order may be quashed and the matter remitted for de novo adjudication on merits subject to a specified pre-deposit and filing of the requisite reply, with provisional attachments being vacated upon compliance.

---