2025 (10) TMI 792

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....er, 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. 15,06,304/- or else submit any relevant clar....

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....ipulated 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 suppression of facts. (1): - Where it appears to the proper officer th....

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....f 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 issue an order. 7. Rule 142(1) of the J & K GST Rules, 2017 is also relevant and is set out below: - 142. Notice and order for....

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....tation. 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 take note of such response/representation filed by the assessee and pass a reasoned order under Section 73(9) of the CGST Act, 2017. 11. For the foregoing reasons, we are of the cons....