Reply Filed After Due Date but Before Order Must Be Considered – J&K & Ladakh HC

The petitioner, a registered GST contractor, challenged a tax demand order passed under Section 73(9) of the SGST Act for FY 2020-21 on the ground that his reply to the show cause notice was not considered. Although the reply was filed after the date mentioned in the notice, it was submitted before the final order was passed.

The tax officer ignored the reply solely on the ground of delay and proceeded to confirm the demand. The petitioner contended that such non-consideration violated the principles of natural justice.

The High Court held that there is no statutory time limit prescribed under Section 73(1) for filing a reply to a show cause notice. Where a reply is received before passing of the final order under Section 73(9), the proper officer is duty-bound to consider it. Ignoring such reply renders the order legally unsustainable.

Accordingly, the impugned demand order was set aside, and the matter was remanded for fresh adjudication after granting the petitioner an opportunity of hearing.

• Taxpayers should ensure replies to show cause notices are filed before final orders, even if delayed.
• GST officers cannot ignore replies merely because they are filed beyond the notice timeline.
• Demand orders passed without considering replies are vulnerable to judicial challenge.
• This ruling strengthens procedural safeguards for taxpayers in GST adjudication proceedings.

This page provides a concise case summary and judicial analysis for quick understanding by practitioners and taxpayers.
For the complete reasoning, factual narration, and verbatim judgment, readers are advised to refer to the uploaded Judgment PDF.