Natural justice in GST assessment: non-consideration of reply led to remand and fresh consideration pending Supreme Court ruling.

The Madras HC set aside a Section 74 assessment order under the Tamil Nadu GST Act because the petitioner's reply had not been considered. As the underlying tax issue remained pending before the Supreme Court, the Court allowed the petitioner to file an additional reply and supporting documents, and declined to insist on the usual pre-deposit condition in the circumstances. The matter was remanded to the respondent for fresh consideration, with final enforcement kept in abeyance until the Supreme Court's decision.

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Issues: Whether the assessment order passed under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017, was liable to be set aside and remanded for fresh consideration when the petitioner's reply had not been considered and the underlying tax issue was pending before the Supreme Court.

Analysis: The impugned assessment order was passed without considering the petitioner's reply. Since the incidence of tax itself was still at large before the Supreme Court, the petitioner was held entitled to an opportunity to place additional reply and supporting documents. The Court also declined to impose the usual pre-deposit condition in the circumstances.

Conclusion: The assessment order was set aside and the matter was remanded to the respondent for fresh consideration, with directions to consider the additional reply and keep final enforcement in abeyance pending the Supreme Court's decision.

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