GST Officer Erred in Presuming ‘No Reply’; HC Orders Fresh Consideration

The taxpayer in this case, represented by its proprietor, filed a writ petition challenging the assessment order issued by the STO for the assessment year 2023-24. The petitioner had received a show cause notice and uploaded a detailed reply. However, the impugned order was passed as if no reply had been filed.

The petitioner challenged the assessment order on the ground of violation of principles of natural justice, since the reply was filed only 2 days later and the defence had not been considered before passing the said order. The Department, on the other hand, said that the reply was belated, as the initial deadline was 01/05/2025 and was later extended up to 16/06/2025. Since the reply was filed only after the last date, i.e., 18/06/2025, the officer presumed no reply was filed and proceeded ex parte with the assessment proceedings.

Issue Raised: Whether passing a GST assessment order without considering a reply filed after the extended deadline amounts to a violation of the natural justice principle.

HC’s Ruling: The Hon’ble court allowed the assessee’s writ petition, setting aside the impugned order. The Court held that although the reply was filed belatedly, the fact remained that it was filed before the assessment order was passed, and ignoring it amounted to denial of natural justice. To balance equities, the Court remanded the matter to the respondent for fresh consideration.

The petitioner was directed to file an additional reply with supporting documents within three weeks. The respondent was instructed to consider both the earlier reply dated 18/06/2025 and any additional reply, issue a clear 14‑day notice fixing a date for a personal hearing, and thereafter pass a fresh order on merits in accordance with law. The writ petition was disposed of with these directions, and the connected miscellaneous petitions were closed.

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