Zakir Hussain Vs Union of India (Jammu & Kashmir High Court)
The Jammu & Kashmir High Court, in the case of Zakir Hussain Vs. Union of India, set aside a GST demand of ₹15,44,922 for the financial year 2020-2021, ruling that the tax authorities were obligated to consider a taxpayer’s belated reply to a show cause notice (SCN) if it was submitted before the final assessment order was issued.
Issue and Background
The petitioner, a contractor registered under GST, challenged the demand order issued by the State Taxes Officer (STO), Circle Kishtwar, arguing it violated the principles of natural justice. The STO had issued an SCN under Section 73(1) of the State Goods and Services Tax Act, 2017 (SGST Act), seeking payment or clarification for a tax liability of ₹15,06,304 and stipulated a response deadline of December 30, 2024.
The petitioner submitted his reply on January 20, 2025, which was after the due date but before the STO passed the final order under Section 73(9) on February 26, 2025. The STO, however, disregarded the reply solely on the ground that it was submitted beyond the prescribed deadline. This non-consideration formed the basis of the petitioner’s challenge before the High Court.
