Statutory notice and hearing requirements vitiate adverse tax assessment when effective service is not provided.

An adverse tax assessment could not be sustained where notice and hearing requirements under the BGST Act were not effectively complied with. The challenge was that show cause notices and hearing intimation were uploaded only on the GST portal, without effective communication by other means, resulting in denial of a meaningful opportunity of participation. The Patna HC accepted the State's concession and applied the earlier view on the same issue, holding that breach of the statutory service and personal hearing procedure vitiated the demand. The impugned order was set aside and the matter remitted for fresh consideration after granting hearing.

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Issues: Whether the summary assessment order and demand proceedings were liable to be set aside for non-compliance with the notice and hearing requirements under the BGST Act.

Analysis: The impugned demand was challenged on the footing that the show cause notices and hearing intimation were uploaded only on the GST portal and no effective communication was made by other means, resulting in denial of a meaningful opportunity of participation. The Court found the defect to be covered by the statutory mandate governing service of notice and the requirement of personal hearing before passing an adverse order, and accepted the State's concession that the matter was governed by the earlier view taken on the same issue.

Conclusion: The impugned order was set aside and the matter was remitted for fresh consideration after granting the petitioner an opportunity of hearing.

Final Conclusion: The assessee obtained relief on the ground of breach of the statutory hearing procedure, and the assessing authority was directed to decide the matter afresh in accordance with law.

Ratio Decidendi: Where an adverse tax order is passed without effective service of notice and without affording the hearing mandated by the statute, the order cannot be sustained and must be set aside for fresh adjudication.

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