Facts of the Case

The Petitioner, Globe Overseas Pvt. Ltd., filed a Writ Petition challenging:

  1. The impugned order dated 24 August 2024 issued by the Sales Tax Officer (DGST Ward‑63, Zone‑6, Delhi), raising a GST demand of ₹12,30,763/‑ for the Financial Year 2019‑20, and
  2. The related Show Cause Notice dated 19 May 2024 and its reminder notice.

The Petitioner also challenged several GST notifications (Notification Nos. 9/2023 and 56/2023 – both Central & State Tax), alleging procedural defects and non‑compliance with Section 168A of the GST Act.

This petition was part of a batch of similar writ petitions challenging the validity of GST notifications that had extended time limits for adjudication under Section 168A.

Issues Involved

  1. Whether the impugned GST demand order and show cause notice were validly issued and whether the Petitioner was denied a fair hearing?
  2. Whether the Petitioner was entitled to proper notice and opportunity before adjudication under the GST regime?
  3. Whether the Court should go into the validity of the impugned GST notifications when such issues were sub‑judice before the Supreme Court? 

Petitioner’s Arguments

The Petitioner contended that:
• The impugned Show Cause Notice was improperly served as it placed on the “Additional Notices Tab” of the GST portal, making it not visible, and hence, there was lack of proper service and no opportunity to file a reply.
• The consequent adjudication order was passed without affording a “hearing” or giving an opportunity to respond, violating principles of natural justice.
• The impugned GST notifications extending the limitation period were invalid, having been issued without compliance with Section 168A of the GST Act. 

Respondent’s Arguments

The Respondent maintained that:
• The Show Cause Notice and reminder were uploaded after January 16, 2024, on the GST portal where the “Additional Notices Tab” was visible, and thus, the Petitioner cannot claim ignorance.
• The Petitioner had sufficient opportunity to respond.
• Challenges to the validity of the impugned notifications could not be entertained as such issues were already under consideration before the Supreme Court in SLP No. 4240/2025 (M/s HCC‑SEW‑MEIL‑AAG JV v. Assistant Commissioner of State Tax & Ors.) and other High Courts.

Court’s Order / Findings

The Delhi High Court held that:

1. On Service and Hearing:
– The Court recognized that the Petitioner might not have been afforded a proper opportunity of hearing before adjudication because the Show Cause Notice and reminder were not responded to, and an order was passed without a personal hearing.
– Citing precedent (e.g., Sugandha Enterprises v. Commissioner Delhi GST & Ors. where similar issues required remand), the Court set aside the adjudication order and remanded the matter to the concerned Adjudicating Authority for fresh consideration after providing a proper opportunity for reply and personal hearing.

2. On Validity of Notifications:
– The Court expressly left open the question of validity of the impugned GST notifications (Nos. 9/2023 & 56/2023).
– It noted that the issue was already before the Supreme Court (SLP No. 4240/2025). Therefore, the adjudicating authority must proceed subject to the outcome of the Supreme Court’s decision.

3. Remand Directions:
– The adjudication order was set aside on the ground of denial of natural justice.
– The Petitioner was granted 30 days to file a reply to the SCN.
– After filing the reply, the Adjudicating Authority must issue a personal hearing notice and proceed afresh.
– Costs of ₹10,000/‑ were imposed on the petitioner to the Delhi High Court Bar Association. 

Important Clarification by Court

• Neutrality on GST Notifications: The Court did not express any opinion on the constitutional or statutory validity of the impugned GST notifications as the same were sub‑judice before the Supreme Court.
• Natural Justice as a Standalone Ground: Even if notifications are valid, failure to provide a proper hearing can itself justify remand for fresh adjudication.
• Applicability of Supreme Court Proceedings: The High Court held that the timeline and legality for GST proceedings must be read in light of pending higher court proceedings

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/75424122025CW196572025_180015.pdf

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