Ex parte tax adjudication set aside for lack of hearing, with remand for fresh consideration on the merits.

An ex parte tax adjudication order concerning alleged wrongful availment of input tax credit was set aside because the affected party had not been given a meaningful opportunity to reply to the show-cause notice. The matter was remitted for fresh consideration on merits, with permission to file a reply and contest the allegations, including the claimed non-transfer of goods. Consequential recovery attachment was also set aside, and all contentions were kept open for reconsideration.

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Issues: Whether the ex parte adjudication order assailing wrongly availed input tax credit should be set aside and the matter remitted for fresh consideration after permitting the petitioner to file a reply to the show-cause notice, with consequential relief against recovery measures.

Analysis: The order under challenge was passed ex parte. The petitioner sought an opportunity to meet the allegations in the show-cause notice, including the finding regarding wrongful availment of input tax credit and the alleged non-transfer of goods. The Court accepted that the matter should be reconsidered after giving the petitioner an opportunity to submit a reply and to contest the grounds raised in the notice. Since the adjudication was ex parte, the appropriate course was to set aside the order and remand the matter for fresh consideration, keeping all contentions open.

Conclusion: The ex parte adjudication order was set aside and the matter was remitted for fresh consideration, with permission to file a reply to the show-cause notice and with the consequential recovery attachment also set aside.

Ratio Decidendi: An ex parte tax adjudication order may be set aside and remanded where the affected party is not afforded a meaningful opportunity to answer the notice and the dispute requires fresh consideration on merits.

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