TaxTMI 
TaxTMI 
2025 (10) TMI 792
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.... 26.02.2025 issued by State Taxes Officer, Circle Kishtwar ["STO"], whereby a demand of tax of Rs. 15,44,922/- for the financial year 2020-2021 has been raised against the petitioner. 2. The impugned notice of demand is assailed by the petitioner, primarily, on the ground that it has been issued in violation of principles of natural justice, in that, the reply submitted by the petitioner to the show cause notice dated 25.11.2024 has not been considered. 3. Briefly put, the relevant facts necessary for disposal of this petition are that the STO vide show cause notice dated 25.11.2024 issued under Section 73(1) of the State Goods and Services Tax Act, 2017 ["SGST'] called upon the petitioner to pay the outstanding tax liability of Rs. 1....
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....he reply has not been submitted within the period stipulated in the show cause notice, but before an order under Section 73(9) of the SGST Act, 2017 is passed? 5. Ancillary to this question is a question as to whether non-consideration of such reply/representation filed by the assessee in response to the show cause notice would vitiate the order passed under Section 73(9) of the SGST Act, 2017 being in violation of principles of natural justice. 6. Before we proceed to consider the question, we deem it appropriate to set out Section 73: 73. Determination of Tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized for any reason other than fraud or any willful misstatement or suppressi....
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....all proceed to issue the notice as provided for in sub-section (1) in respect of such amount which falls short of the amount actually payable. (8): - Where any person chargeable with tax under sub-section (1) or under sub-section (3) pays the said tax along with interest payable under Section 50 within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded. (9): - The proper officer shall, after considering the representation, if any, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent of tax or ten thousand rupees, whichever is higher, due from such person and iss....
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.... incumbent upon the proper officer to consider the reply/representation and then pass a speaking order in terms of Section 73(9) of the Act after dealing with such response/representation. It is so because the time to file response to the show cause notice is not statutorily fixed and is left to the discretion of the proper officer. 10. Ordinarily, the delay in submitting reply/representation, in response to the show cause notice issued under Section 73(1), will enable the proper officer to pass an order under Section 73(9) on the assumption that assessee has nothing to say in the matter. However, where the reply has been received and order under Section 73(9) is yet to be passed, it is in the interest of justice, equity and fairplay to ....