Facts of the Case

The petitioner, M/s Chauhan Kirana Trading, challenged an order dated 05.04.2024 passed by the Sales Tax Officer for the tax period April 2018 to March 2019, raising a demand of Rs. 11,98,884, along with the underlying show cause notice dated 27.12.2023. The petition also challenged the vires of Notification No. 56/2023-Central Tax and the corresponding State Tax notification issued under Section 168A of the CGST Act, 2017, extending limitation for passing orders under Section 73. The petitioner's specific factual grievance was that the SCN had been uploaded only on the portal's 'Additional Notices Tab', of which it became aware only when a registration-cancellation notice was issued on 14.10.2025, by which time it had lost the opportunity to reply or attend a personal hearing.

Issues Involved

  1. Whether the validity of Notification No. 56/2023-Central Tax, extending the Section 73 limitation period, required adjudication given it was pending before the Supreme Court.
  2. Whether an assessment order passed pursuant to an SCN uploaded only on the 'Additional Notices Tab', without personal hearing or reply, is sustainable independent of the notification's validity.

Petitioner's Arguments

  • The SCN from which the impugned order arose was uploaded only on the 'Additional Notices Tab' of the GST portal, and the petitioner learnt of the outstanding demand only when a separate notice for cancellation of registration was issued.
  • The impugned order was passed without affording the petitioner a personal hearing and in the absence of any reply, since the petitioner never had actual knowledge of the proceedings.

Respondent's Arguments

  • The department submitted that a reminder dated 8th February 2024 had been issued after 16th January 2024, i.e., after the GST portal was reconfigured to place the 'Additional Notices & Orders' tab adjacent to the main 'Notices & Orders' tab.

Court Order / Findings

  • Noting that the challenge to Notification No. 56/2023 was already pending before the Supreme Court in the HCC-SEW-MEIL-AAG JV SLP, the Court declined to adjudicate the vires issue and instead resolved the matter on the narrower service defect, holding that since the SCN predated the 16th January 2024 portal reconfiguration and was uploaded only on the 'Additional Notices Tab', the petitioner was entitled to the same relief as in Neelgiri Machinery - a fresh opportunity to reply and be heard, following its own consistent line of orders.
  • The impugned order dated 05.04.2024 was set aside, and the petitioner was granted time till 15th December 2025 to file its reply to the SCN.
  • The Adjudicating Authority must thereafter issue a personal hearing notice to the specified email and mobile number, consider the reply and hearing submissions, and pass a fresh reasoned order - all subject to the outcome of the Supreme Court's ruling on Notification No. 56/2023 and the Delhi High Court's own pending batch in Engineers India Limited.

Important Clarification

  • Where a GST SCN predating the 16th January 2024 GST-portal reconfiguration was uploaded only under the 'Additional Notices Tab', Delhi High Court treats this as a service defect warranting a fresh reply-and-hearing opportunity, independent of and without needing to decide the pending challenge to Section 168A notifications.
  • Relief granted on this narrower service-defect ground is expressly made subject to the outcome of the Supreme Court's pending adjudication on the validity of Notification No. 56/2023-Central Tax, preserving all rights and remedies of both sides.

Sections Involved

  • Section 73, CGST Act, 2017 - determination of tax not paid/short paid.
  • Section 168A, CGST Act, 2017 - power to extend time limits in special circumstances, underlying Notification No. 56/2023.
  • Section 169, CGST Act, 2017 - modes of service of notice.

Decision – In Favour of

Disposed of with directions, in part in favour of the petitioner - demand order set aside and fresh reply/hearing opportunity granted, notification challenge left open.

Case Details

  • Court: High Court of Delhi at New Delhi
  • Case No.: W.P.(C) 17331/2025 & CM APPL. 71327/2025
  • Coram: Justice Prathiba M. Singh and Justice Shail Jain
  • Date: 14th November, 2025

Link to Download the Order

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