Natural justice in GST adjudication requires consideration of a late but pre-order reply before passing the final demand order.

A reply to a show cause notice under Section 73(1) of the State GST Act, 2017 is not barred merely because it was filed after the time mentioned in the notice, if it is received before the final order under Section 73(9) is passed. The proper officer must consider such a reply and pass a reasoned order; ignoring it violates natural justice and the requirement of a speaking order. The notice-and-demand mechanism under Rule 142(1) of the J&K GST Rules, 2017 supports consideration of the assessee's response before adjudication. An order passed without considering the reply is unsustainable.

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Issues: Whether a reply to a show cause notice under Section 73(1) of the State Goods and Services Tax Act, 2017, received after the time given in the notice but before passing of the order under Section 73(9), must be considered by the proper officer, and whether omission to do so vitiates the order.

Analysis: The time for filing reply to a notice under Section 73(1) is not statutorily fixed and may be regulated by the proper officer. However, where the reply is actually received before the final order under Section 73(9) is passed, the proper officer cannot ignore it merely because it was filed beyond the period stated in the notice. In such a situation, the officer is required to consider the response and pass a reasoned order. Non-consideration of the reply in these circumstances is inconsistent with principles of natural justice and the requirement of a speaking order. The notice and demand mechanism under Rule 142(1) of the J & K GST Rules, 2017 also supports consideration of the assessees response before final adjudication.

Conclusion: The reply filed before the order under Section 73(9) was bound to be considered, and the impugned order passed without considering it was unsustainable.

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