Taxpayer Fails to Respond to GST SCN Due to Illness and 30% Disability: Calcutta HC Grants Opportunity to File Reply [Read Order]

In a recent ruling, the Calcutta High Court allowed a taxpayer to file a fresh reply to a GST show-cause notice after the taxpayer failed to respond earlier due to illness and 30% disability.

Sanjit Acharya, a sole proprietor engaged in the supply and distribution of gas, filed a writ petition challenging an order passed by the Assistant Commissioner of Revenue under Section 73 of the GST Act for the tax period from July 2017 to March 2018. The petitioner also challenged the appellate order that dismissed his appeal on the ground of delay.

The petitioner’s counsel argued that he was seriously ill and bedridden during the relevant period, which prevented him from responding to the GST notices and filing the appeal within time. His counsel argued that the petitioner had made the required pre-deposit of Rs. 2,24,148 for the appeal and that his health condition should be considered a valid reason for the delay. They argued that the petitioner should not be penalised without being given an opportunity to present his case, especially considering his disability.

Understanding Common Mode of Tax Evasion with Practical Scenarios, Click Here

The GST department’s counsel argued that the petitioner had failed to respond to multiple notices issued under the GST Act and did not file the appeal within the legally allowed time. They argued that the appellate authority was correct in rejecting the appeal as time-barred since the petitioner did not provide a proper explanation for the delay.

A single bench led by Justice Raja Basu Chowdhury observed that the petitioner’s medical condition and disability could have prevented him from responding to the notices and filing the appeal in time. The court observed that it would be fair to give the petitioner an opportunity to present his case before the department.

The court set aside the orders passed by the GST department and the appellate authority. It directed the petitioner to file his reply to the show-cause notice by July 16, 2025. The court clarified that this timeline would not be extended. The court also quashed the attachment order issued against the petitioner’s property and directed that the pre-deposit already made would be retained and adjusted according to the final outcome. The writ petition was allowed.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates