2026-VIL-1162-ORI
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SGST High Court Cases

GST - Non-consideration of manually filed reply to Demand-cum-Show Cause Notice under Section 74 and premature passing of Order-in-Original - Petitioner filed a detailed reply manually during the personal hearing, which was received and acknowledged by signature – Petitioner was allowed time to furnish documents on an adjourned date. The Order-in-Original was passed before that date, recording that the Petitioner did not appear on any scheduled date and did not file the reply on the portal - Whether the Order-in-Original is sustainable when the reply received manually was not considered and the order was passed before the time granted for production of documents - HELD - Section 74(9) read with Rule 142(4) of the CGST Rules, 2017 does not restrict consideration of a reply, explanation, written objection or representation merely because it is submitted manually, as the words uploaded electronically appear only in respect of Form GST DRC-01 and not Form GST DRC-06 - Form GST DRC-06 is a procedural tool to facilitate the Authority in considering the explanation and cannot be used as an absolute bar to deprive a taxpayer of the statutory right to defend. The Proper Officer cannot adopt a hyper-technical approach to treat the matter as if no reply was filed. It is the duty of the adjudicating authority to consider the reply even if the noticee was not present at the hearing - The Proper Officer must demonstrate in writing how each point raised was dealt with, assigning reasons for acceptance or rejection. The acknowledged receipt of the reply creates an undeniable record that the explanation was in possession of the Superintendent before the order - The order was passed prematurely despite time granted for production of documents, and the Superintendent became functus officio after disposing of the proceeding, yet received the documents later. The jurisdictional objection was not dealt with, and non-observance of natural justice is itself prejudice, since the authority cannot presume that a hearing would serve no purpose - The Order-in-Original is set aside for violation of the principles of natural justice and the matter is remitted to the Superintendent for fresh consideration of the objection as to jurisdiction and the reply, with liberty to the Petitioner to raise all pleas and submit documents - the writ petition stands disposed of - Maintainability of writ petition against order under Section 74 despite alternate statutory remedy - Petitioner challenged the Order-in-Original and the Demand-cum-Show Cause Notice issued under Section 74 of the CGST Act, 2017 alleging violation of principles of natural justice - Whether the writ petition is maintainable despite the availability of an alternate remedy under the GST Act - HELD - Where valuable civil rights are taken away by violation of the principles of natural justice, the Court cannot fold its hands and look on as a helpless onlooker asking the party to approach the remedy available in the statute. The rule of exhaustion of statutory remedies is a rule of policy, convenience and discretion, and writ courts may exercise jurisdiction despite an alternative remedy where there is a violation of the principles of natural justice, where the order is wholly without jurisdiction, or where vires of an Act is challenged - Non-consideration of the reply, explanation and objection as to jurisdiction to initiate the proceeding under Section 74 strikes at the root of the matter and deserves the exercise of power under Articles 226 and 227 of the Constitution. Where disputed questions of fact need adjudication, the matter is best left to the competent forum, but no such question arose here as the receipt of the reply was undisputed - The writ petition is maintainable.
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