Facts of the Case

The Petitioner, Natraj Enterprises, challenged:

  • Show Cause Notice dated 12.12.2023
  • Order dated 02.04.2024 passed by GST authorities confirming tax demand for April 2018–March 2019

The demand (as seen in the table on page 2 of the judgment) included tax, interest, and penalty components aggregating to a substantial amount.

Additionally, the Petitioner challenged the constitutional validity of GST notifications extending limitation periods.

The Petitioner contended that:

  • SCN and order were uploaded under the “Additional Notices Tab” on the GST portal
  • Hence, they were not effectively communicated 

Issues Involved

  1. Whether the impugned GST order passed without reply and hearing violates principles of natural justice?
  2. Whether uploading notices in the “Additional Notices Tab” amounts to valid service?
  3. Whether extension of limitation under Section 168A CGST Act via Notifications is valid?
  4. Whether ex parte adjudication orders should be set aside in such circumstances?

Petitioner’s Arguments

  • The SCN and order were not properly communicated as they were uploaded in a non-visible tab.
  • No effective opportunity to file reply or attend personal hearing was granted.
  • The impugned order is non-speaking and passed ex parte, violating natural justice.
  • The GST Notifications extending limitation are ultra vires Section 168A. 

Respondent’s Arguments

  • The Petitioner was issued:
    • SCN
    • Reminder dated 01.03.2024
    • Opportunity of personal hearing
  • Changes in GST portal after 16.01.2024 made notices visible.
  • Failure to respond was attributable to the Petitioner.
  • Proper procedure was followed before passing the order. 

Court’s Findings / Order

  • The Court observed:
    • Petitioner failed to file reply and attend hearing
    • However, principles of natural justice must prevail
  • Relying on similar precedent (Sugandha Enterprises case), the Court held:
    • Even if opportunity was granted, effective hearing must be ensured

Important Clarifications by Court

  • Challenge to GST Notifications under Section 168A:
    • Not decided
    • Left open subject to Supreme Court decision in:
      M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax (SLP 4240/2025)
  • The Court emphasized:
    • Different High Courts have taken conflicting views on Notification 56/2023
    • Final outcome will depend on Supreme Court ruling
  • Access to GST portal to be restored for compliance

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/PMS23122025CW195262025_173731.pdf

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