Fair opportunity in GST adjudication required; ex parte order set aside and matter restored for response and documents.

An ex parte adjudication under the Karnataka GST regime may be interfered with where the taxpayer was denied a fair opportunity to respond, especially when bona fide reasons and medical circumstances are shown. The alleged GSTR-3B and GSTR-2A mismatch was capable of explanation through supporting material, and the denial of that opportunity justified setting aside the order. The adjudication was quashed and the matter restored to the adjudicating authority, with liberty to the taxpayer to file a response and additional documents within the time granted.

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Issues: Whether an ex parte adjudication order under the Karnataka Goods and Services Tax Act, 2017 should be quashed and the matter restored to enable the taxpayer to file a response and supporting documents.

Analysis: The taxpayer had not participated in the proceedings and sought an additional opportunity on the basis of bona fide reasons and medical circumstances. The dispute arose from an alleged mismatch between GSTR-3B and GSTR-2A, and the taxpayer stated that supporting material could be produced to explain the difference. In these circumstances, the denial of an opportunity to respond was treated as warranting interference.

Conclusion: The ex parte adjudication order was quashed and the proceedings were restored to the adjudicating authority, with liberty to the taxpayer to file a response and additional documents within the time granted.

Final Conclusion: The decision grants the taxpayer a fresh opportunity in the adjudication proceedings and sets aside the impugned order.

Ratio Decidendi: Where an ex parte fiscal adjudication is shown to have proceeded without a fair opportunity to respond, the order may be set aside to enable adjudication after considering the taxpayer's explanation and documents.

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