Ex parte GST adjudication may be reopened for credible hardship, with fresh hearing restored subject to revenue-protective conditions

Ex parte GST adjudication under Section 74 may be revisited where credible medical or personal difficulties explain the assessee's failure to respond to the show cause notice, particularly where the order was uploaded in an unexpected portal location. The described relief involved setting aside the ex parte order, restoring the assessee's opportunity to reply, and safeguarding revenue through a protective deposit after credit for any amount already recovered from the electronic cash ledger. The article notes that this approach was applied to the July-December 2017 tax period and that the assessee was required to deposit part of the disputed tax as a condition of the restored opportunity.

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Issues: Whether the ex parte adjudication order passed under Section 74 for the tax period July 2017 to December 2017 was liable to be set aside and the assessee granted an opportunity to respond to the show cause notice.

Analysis: The petition arose from a show cause notice and an ex parte order under the GST enactments. The material circumstances noted were the medical and personal difficulties affecting the person managing the business, the assertion that the adjudication order was uploaded under the portal tab for additional notices and orders, and the resulting failure to respond or prefer an appeal in time. In that background, relief was granted by restoring the opportunity to contest the proceedings, while protecting the revenue by directing a deposit of part of the disputed tax after adjustment of any amount already recovered from the electronic cash ledger.

Conclusion: The ex parte order dated 30.12.2024 was set aside and the assessee was granted a fresh opportunity to reply to the show cause notice, subject to deposit of Rs. 1,00,000/- after giving credit to any recovery already made. The issue was decided in favour of the assessee.

Ratio Decidendi: Where an assessee shows credible circumstances explaining failure to contest GST proceedings and the adjudication has proceeded ex parte, a fresh opportunity may be granted by setting aside the order and restoring the show cause proceedings subject to a protective deposit safeguarding the revenue.

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