Madras HC sets aside GST Demand order u/s 73(9) due to Rejection of SCN Reply without Adequate Reason

The Madras High Court has set aside a GST demand order under Section 73(9) of the GST Act, citing that the tax department rejected the taxpayer’s reply to the show cause notice (SCN) without providing sufficient reasons. The court found that the department acted arbitrarily by failing to consider the taxpayer's submission. As a result, the demand raised in the order was deemed invalid. The judgment underscores the importance of providing taxpayers with a fair opportunity to present their case and ensuring that tax authorities follow due process when issuing demand orders.