Facts of the Case

The petitioner, Ms Markex Branding Solutions Pvt. Ltd., challenged a Show Cause Notice dated 28th May 2024 and a consequent order dated 20th August 2024 passed by the Sales Tax Officer for FY 2019-20, alongside the vires of Notification No.56/2023-Central Tax and the corresponding State Tax notification extending the limitation for adjudication under Section 168A of the CGST Act, 2017. This notification challenge stood tagged with a batch of petitions (lead matter: DJST Traders Pvt. Ltd. v. Union of India), the core question being sub judice before the Supreme Court in SLP No.4240/2025 (HCC-SEW-MEIL-AAG JV). On facts, the petitioner neither filed a reply to the SCN nor attended the personal hearing fixed for 12th August 2024, resulting in an ex-parte order confirming demand; it claimed to have learnt of the order only when its Chartered Accountant visited the GST office, and had by then applied for cancellation of its registration.

Issues Involved

  1. Whether the challenge to the Section 168A limitation-extension notifications should await the Supreme Court's ruling in the connected proceedings.
  2. Whether an ex-parte assessment order passed without the assessee's reply or hearing deserves to be set aside, and on what terms.

Petitioner's Arguments

  • Challenged the validity of the notifications extending the limitation period for Section 73 adjudication as issued contrary to Section 168A.
  • Submitted it had no real opportunity to respond, being unaware of the SCN and order until discovered by its Chartered Accountant.

Respondent's Arguments

  • Relied on the impugned order recording that the taxpayer neither deposited the demand nor filed objections in DRC-06 despite sufficient opportunities of personal hearing.

Court Order / Findings

  • Left the vires challenge to the Section 168A notifications open, to abide by the outcome in SLP No.4240/2025 before the Supreme Court and the Delhi High Court's own batch matter, Engineers India Ltd. v. Union of India.
  • Following its precedent in Sugandha Enterprises v. Commissioner DGST, held that since the petitioner was not afforded a genuine opportunity of hearing, the impugned order deserved to be set aside, but imposed costs of Rs.25,000 payable to the Sales Tax Bar Association given the petitioner's non-responsive conduct.
  • Granted time till 15th December 2025 to file a reply to the SCN, directed a fresh personal hearing and a fresh reasoned order — subject to the Supreme Court's ultimate decision on Section 168A.
  • Directed that GST Portal access be restored to the petitioner within one week to enable filing of the reply and viewing of notices.

Important Clarification

  • Even while the vires of Section 168A limitation-extension notifications remain sub judice before the Supreme Court, a Court can still grant an ex-parte assessee a fresh opportunity to be heard — conditioned on cost for non-responsive conduct — while expressly keeping the final relief contingent on the notification challenge's outcome.

Sections Involved

  • Section 168A, CGST Act, 2017 — empowers extension of time limits in special circumstances on the GST Council's recommendation.
  • Section 73, CGST Act, 2017 — determination of tax not paid or short paid, other than by reason of fraud.

Decision – In Favour of

Disposed of with directions and a remand on cost, partly in favour of the Assessee; the vires question on Section 168A notifications is left open.

Case Details

Court: High Court of Delhi at New Delhi
Case No.: W.P.(C) 15643/2025 & CM APPL. 63967/2025
Coram: Justice Prathiba M. Singh and Justice Shail Jain
Date of Order: 12th November 2025

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