Natural justice in GST adjudication requires consideration of a late reply filed before disposal; orders were set aside and remanded.

The Calcutta HC held that a reply to a show-cause notice, though filed after the time stated in the notice, had to be considered because it was submitted before the adjudication proceedings were disposed of. Non-consideration of that reply before passing the order under Section 73(9) of the WBGST/CGST Act was unsustainable. The appellate order was also interfered with because the underlying adjudication was vitiated. The adjudication and appellate orders were set aside, the consequential demand was quashed, and the matter was remanded for fresh adjudication on merits after granting an opportunity of hearing.

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Issues: Whether the petitioner's reply to the show-cause notice, though filed beyond the time stipulated in the notice, ought to have been considered before passing the adjudication order, and whether the adjudication and appellate orders were liable to be set aside with consequential remand.

Analysis: The reply had been filed before disposal of the proceedings, even though after expiry of the time granted in the show-cause notice. On that basis, the non-consideration of the reply before passing the order under Section 73(9) of the WBGST/CGST Act, 2017 was found unsustainable. The appellate rejection was also interfered with, and the matter was sent back for fresh adjudication on merits after giving the petitioner an opportunity of hearing.

Conclusion: The adjudication order and the appellate order were set aside, the matter was remanded to the proper officer for de novo consideration, and the consequential demand was quashed.

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