FACTS OF THE CASE

  • The Petitioner challenged:
    • Adjudication Order dated 24.08.2024 passed under GST law, and
    • Associated demand for FY 2019–2020.
  • A Show Cause Notice dated 23.05.2024 and reminder were issued, and personal hearing was scheduled.
  • The Petitioner:
    • Did not file reply to the SCN, and
    • Did not appear for personal hearing, resulting in an ex parte order.
  • The Petitioner also challenged the validity of GST Notifications (Nos. 9/2023 & 56/2023) issued under Section 168A of the CGST Act.

ISSUES INVOLVED

  1. Whether an ex parte GST adjudication order without effective opportunity violates principles of natural justice.
  2. Whether uploading notices on the “Additional Notices” tab constitutes valid service.
  3. Whether the matter should be remanded for fresh adjudication.
  4. Whether validity of Section 168A limitation-extension notifications impacts adjudication. 

PETITIONER’S ARGUMENTS

  • The SCN and order were uploaded on the “Additional Notices” tab, hence not effectively communicated.
  • Due to lack of proper notice, the Petitioner:
    • Could not file reply, and
    • Was denied opportunity to contest the demand on merits.
  • Sought:
    • Setting aside of the order, and
    • Opportunity to file reply and be heard.

RESPONDENT’S ARGUMENTS

  • The Department contended:
    • SCN, reminder, and hearing notice were duly issued.
    • Post system changes, the “Additional Notices” tab was visible, hence the Petitioner cannot plead ignorance.
  • The Petitioner failed to:
    • File reply, and
    • Attend the hearing despite opportunity.

COURT’S FINDINGS / ORDER

  • The Delhi High Court observed:
    • The Petitioner did not avail opportunity to reply or attend hearing.
    • However, interest of justice requires opportunity to contest on merits.
  • The Court:
    • Set aside the impugned adjudication order, and
    • Remanded the matter for fresh adjudication.
  • Directed:
    • Petitioner to file reply, and
    • Authority to pass a fresh reasoned order after hearing. 

IMPORTANT CLARIFICATION BY COURT

  • The Court clarified:
    • The issue of validity of Notifications under Section 168A is kept open,
    • Subject to final decision of the Supreme Court in pending SLP.
  • Relief granted only to ensure fair opportunity, not on merits of tax demand. 

SECTIONS / LEGAL PROVISIONS INVOLVED

  • Article 226 & 227 – Constitution of India
  • Section 73 – CGST Act, 2017 (Adjudication of tax demand)
  • Section 168A – CGST Act, 2017 (Extension of limitation via notifications)
  • Relevant GST Notifications:
    • Notification No. 9/2023 (Central & State Tax)
    • Notification No. 56/2023 (Central & State Tax)

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/75418122025CW191962025_172403.pdf

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