Facts of the Case

  • The Petitioner challenged the adjudication order dated 05.03.2024 passed by SGST authorities for FY 2018–19, raising a demand of ₹9,77,618.
  • A Show Cause Notice dated 08.12.2023 and reminder dated 24.01.2024 were issued.
  • These notices were uploaded under the “Additional Notices Tab” on the GST portal.
  • The Petitioner claimed:
    • No knowledge of SCN
    • No opportunity to file reply
    • No participation in personal hearing
  • Consequently, the order was passed ex parte.

Issues Involved

  1. Whether an ex-parte GST order passed without proper communication of SCN violates principles of natural justice.
  2. Whether uploading notices in the “Additional Notices Tab” amounts to valid service.
  3. Whether such adjudication orders deserve to be set aside and remanded.
  4. Whether validity of notifications issued under Section 168A can be examined at this stage.

Petitioner’s Arguments

  • SCN and reminder were not effectively communicated, being placed in a non-visible tab.
  • The Petitioner was deprived of:
    • Filing reply
    • Attending personal hearing
  • The adjudication order was passed in violation of natural justice.
  • Notifications under Section 168A extending limitation were also challenged. 

Respondent’s Arguments

  • GST portal changes after 16.01.2024 made notices visible.
  • Reminder was issued thereafter, yet:
    • No reply filed
    • No hearing attended
  • Hence, the ex-parte order was justified. 

Court Findings / Order

  • The Court observed that:
    • The SCN uploaded earlier may not have come to the Petitioner’s knowledge.
    • Opportunity of hearing is a fundamental requirement in adjudication.
  • Following consistent precedents, the Court held:
    • Orders passed without proper opportunity should be set aside

Important Clarifications

  • Validity of Section 168A notifications kept open.
  • Final outcome subject to Supreme Court decision in:
    • M/s HCC-SEW-MEIL-AAG JV vs. Assistant Commissioner of State Tax
  • Authorities must ensure:
    • Proper communication of notices (including email)
  • All rights and remedies of parties remain open

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/75424122025CW196542025_175927.pdf 

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