FACTS OF THE CASE

  1. Petitioner: M/s Sanjay Medicos
  2. Respondents: Sales Tax Officer/Class II (Ward‑90), DGST and Another
  3. The Petitioner filed the present writ petition under Article 226 of the Constitution of India challenging:
    • The impugned adjudication order dated 9 August 2024 (for FY 2019‑20) passed by the Sales Tax Officer; and
    • The impugned Show Cause Notice dated 23 May 2024.
  4. The Petitioner also challenged the constitutional validity of the following GST Notifications:
    • Notification No. 09/2023 – Central Tax dated 31 March 2023;
    • Notification No. 09/2023 – State Tax dated 22 June 2023;
    • Notification No. 56/2023 – Central Tax dated 28 December 2023; and
    • Notification No. 56/2023 – State Tax dated 11 July 2024.
  5. The Petitioner contended that due process was not followed in issuance of the impugned notifications extending time limits under Section 168A of the Central Goods and Services Tax Act, 2017 (“GST Act”). 

ISSUES INVOLVED

  1. Whether the adjudication order was passed without affording the Petitioner a fair opportunity to be heard (principle of natural justice).
  2. Whether the impugned GST notifications issued under Section 168A of the GST Act for extension of limitation were validly issued.
  3. Whether the writ petition should be disposed of with remand to the adjudicating authority or decided on merits. 

PETITIONER’S ARGUMENTS

The Petitioner argued that:

  • No proper opportunity was given to file a reply to the Show Cause Notice.
  • The adjudication order was passed ex‑parte without hearing the Petitioner.
  • The impugned GST notification(s) under Section 168A were issued in breach of statutory requirements and without due recommendation by the GST Council. 

RESPONDENT’S ARGUMENTS

Respondent’s counsel contended that:

  • Petitioner failed to file a reply or appear despite reminders.
  • Notifications under Section 168A were validly issued in the public interest and within the statutory framework.
  • The adjudication proceedings were lawful. 

COURT’S ORDER / FINDINGS

  1. The Court noted that several High Courts and the Supreme Court in SLP No. 4240/2025 (M/s HCC‑SEW‑MEIL‑AAG JV v. Assistant Commissioner of State Tax & Ors.) were already seized with the issue of validity of the impugned GST notifications.
  2. The challenge to the impugned notifications was kept open and left for adjudication in the Supreme Court.
  3. The Court observed that in the present case the Petitioner was not afforded a fair opportunity to file a reply to the Show Cause Notice, and the fatally flawed adjudication order was passed without due hearing.
  4. Relying on earlier precedents (including Sugandha Enterprises v. Commissioner, Delhi GST), the Court held the impugned order unsustainable for want of hearing.
  5. Consequently, the impugned adjudication order was set aside, and the matter was remanded back to the concerned adjudicating authority for fresh proceedings after affording:
    • An opportunity to file reply to SCN;
    • Personal hearing; and
    • Fresh adjudication.
  6. Time granted to Petitioner to file reply: till 30 November, 2025.
  7. The validity of notifications was expressly left open for consideration in appropriate higher forums.

IMPORTANT CLARIFICATION

The High Court did not decide the constitutional validity of the impugned GST notifications. That issue remains pending before the Supreme Court in SLP No. 4240/2025 and is left open for adjudication. 

SECTIONS INVOLVED

  • Section 168A – Central Goods and Services Tax Act, 2017 (Extension of time limits).
  • Article 226 – Constitution of India (Writ jurisdiction).

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/PMS30102025CW164482025_152038.pdf

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