GST demand remanded for fresh adjudication on merits subject to pre-deposit and opportunity to file reply

GST demand and rectification orders were set aside to the extent necessary for remand, with the matter directed for fresh adjudication on merits. The assessee was required to deposit 50% of the disputed tax within the stipulated time and file a reply with supporting documents. The assessee was also to be heard before any fresh order was passed, and the bank attachment was to be lifted upon compliance with those conditions. The direction reflects that, where a taxpayer seeks reconsideration and undertakes a substantial pre-deposit, the dispute may be remitted for fresh decision with procedural safeguards.

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Issues: Whether the impugned GST demand order and rectification order warranted interference and remand for fresh adjudication on merits, subject to deposit of 50% of the disputed tax and filing of reply with supporting documents.

Analysis: The writ petition was filed after expiry of the statutory appeal period, but the petitioner expressed willingness to pay 50% of the disputed tax and sought an opportunity for fresh adjudication. In the circumstances, the Court directed remand to the respondent for passing a fresh order on merits, subject to pre-deposit of 50% of the disputed tax within the stipulated time and filing of a reply with documents. The Court also directed that the petitioner be heard before any fresh order is passed and that bank attachment be lifted upon compliance with the conditions.

Conclusion: The impugned orders were set aside to the extent necessary for remand, and the matter was directed to be reconsidered afresh on merits subject to compliance with the stipulated conditions, in favour of the assessee.

Ratio Decidendi: Where the assessee undertakes a substantial pre-deposit and seeks an opportunity to contest the demand, the Court may remit the matter for fresh adjudication on merits with appropriate procedural safeguards.

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