GST demand orders need reasoned consideration of the taxpayer's reply and proper due process before fresh adjudication.

GST assessment orders confirming demand cannot stand where they do not show meaningful consideration of the assessee's reply and supporting materials. The Court found the impugned order lacked clear application of mind to the response filed, so the demand confirmation was unsustainable and the order was quashed. The adjudication process was also found procedurally defective because the authority fixed a personal hearing before calling for a reply, which required correction. Fresh adjudication was directed after due notice, along with guidance to ensure proper observance of due process in future GST proceedings.

---

---

Issues: (i) Whether the impugned GST assessment order confirming the demand could be sustained when it disclosed no clear discussion on the assessee's reply and required interference. (ii) Whether the procedure followed by the assessing authority in calling for a personal hearing and reply required corrective directions.

Issue (i): Whether the impugned GST assessment order confirming the demand could be sustained when it disclosed no clear discussion on the assessee's reply and required interference.

Analysis: The assessment order was found to contain no clear discussion showing application of mind to the reply submitted by the assessee. In the absence of a proper consideration of the reply and the supporting materials, the confirmation of demand could not be sustained.

Conclusion: The impugned assessment order was liable to be set aside and the matter was required to be reconsidered afresh.

Issue (ii): Whether the procedure followed by the assessing authority in calling for a personal hearing and reply required corrective directions.

Analysis: The sequence adopted by the authority in first fixing personal hearing and thereafter calling upon the assessee to file a reply was held to be procedurally improper and needing correction. The Court also directed that due notice be granted before any fresh order is passed and that proper guidelines be framed and circulated to ensure observance of due process.

Conclusion: Corrective directions were issued to the Department, and fresh adjudication was ordered after due notice.

Final Conclusion: The assessment order was quashed, the matter was remitted for fresh adjudication in accordance with law, and procedural safeguards were directed to be followed in future GST adjudications.

Ratio Decidendi: An assessment order confirming tax demand cannot be sustained when it fails to show meaningful consideration of the assessee's reply and the adjudicatory procedure departs from due process.

---