Natural justice in GST proceedings: taxpayer allowed to reply to show cause notice before fresh adjudication.

A taxpayer's challenge to orders under the J&K GST Act on grounds of non-service and breach of natural justice was not decided on the merits of the tax demand; instead, the court permitted the petitioner to file a reply to the show cause notice already placed before it. The tax authority was directed to consider that reply and pass a fresh order in accordance with law within the stipulated time. The dispute was thus left open for reconsideration after giving the taxpayer an opportunity of hearing.

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Issues: Whether the petitioner should be permitted to respond to the show cause notice and the matter be left for fresh consideration by the tax authority.

Analysis: The petition challenged orders passed under Section 74 of the J&K GST Act, 2017 on the ground of non-service and breach of natural justice. Without entering into the merits of the disputed tax liability, the Court accepted that the petitioner should be given an opportunity to place a reply to the show cause notice already supplied in Court. The respondents were directed to consider that reply and pass an order in accordance with law within the stipulated time.

Conclusion: The petitioner was permitted to respond to the show cause notice, and the authority was directed to decide the matter afresh after considering the reply.

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