GST SCN Reply filed beyond Time Limit but Before Disposal of Proceedings: Calcutta HC quashes S. 73 Order [Read Order]

The Calcutta High Court has quashed an order passed under Section 73(9) of the WBGST/CGST Act, 2017, holding that a Goods and Services Tax (GST) show cause notice (SCN) reply even if submitted after the prescribed time limit must be considered if filed before final disposal of the proceedings.

Justice Raja Basu Chowdhury disposed of the writ petition wherein the petitioner had challenged the order covering the period July 2017 to March 2018, and the subsequent rejection of his appeal under Section 107 of the CGST Act on limitation grounds.

The petitioner filed his response to the SCN on October 13, 2023, albeit beyond the period stipulated in the notice. However, since this response was submitted before the adjudicating authority passed its final order, he argued it should have been considered on its merits.

Despite this, the proper officer dismissed the reply as time‑barred and issued the impugned order without adjudicating the substance of the petitioner’s submissions.

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Thereafter, the petitioner filed an appeal under Section 107, which was rejected on the ground of a 128‑day delay, even though he had furnished an explanation. The appellate authority did not properly consider that explanation before dismissing the appeal.

The High Court observed that the principle of natural justice mandates that any reply filed before disposal of proceedings must be taken on record, regardless of its timeliness. It held that disregarding the belated reply amounted to a breach of that principle. Consequently, the Court set aside both the order dated December 14, 2023, and the appellate order of May 25, 2025, remanding the matter to the proper officer for re‑adjudication on merits.

Additionally, the Court quashed the consequential demands raised through Form DRC‑7 dated December 19, 2023, and APL‑04 dated May 22, 2025/June 3, 2025.

The petitioner was represented by Mr. Himangshu Kumar Roy, Ms. Shivani Shaw, Mr. A. Roy and Mr. Gourav Chakraborty, while the CGST department was represented by Mr. Tapan Bhanja.

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