Facts of the Case

  1. The Petitioner, Seven Seas Lights Pvt. Ltd., registered under GST with effect from 1st July 2017, was served a show‑cause notice dated 25th November 2024 alleging excess availment of Input Tax Credit (ITC) and demanding ₹25,99,696/‑ for April 2020 to March 2021.
  2. The impugned order dated 20th February 2025 confirmed the demand at ₹28,86,238/‑. The Petitioner contended that the show‑cause notice was never served, as:
    • It was not physically received.
    • The domain and email (@7seaslights.com) used for communication had expired before issuance of the show‑cause notice.
    • Directors had changed and the GST registration shifted from Delhi to Maharashtra, leading to non‑receipt of notice and no opportunity for personal hearing.
  3. The Petitioner only learned of the order in June 2025 upon visiting the Delhi GST Department for business closure procedures. 

Issue(s) Involved

  1. Whether the show‑cause and hearing notices were validly served on the Petitioner.
  2. Whether the Petitioner was denied the opportunity to be heard — a fundamental principle of natural justice — before confirmation of the GST demand. 

Petitioner’s Arguments

  • The Petitioner asserted that neither the show‑cause notice nor personal hearing communication was served due to email bounce‑backs and expiry of the domain.
  • Consequently, the Petitioner claimed denial of opportunity to present its case on merits.
  • The Petitioner sought remand of the matter to the Commissioner for proper service and hearing.

Respondent’s Arguments

  • The CGST Department argued that notices were served by:
    • Uploading on the GST portal.
    • Sending emails and registered post.
  • They maintained that since notices were uploaded and sent, the service was complete. 

Court’s Findings & Order

After reviewing submissions:

  1. Service Validity: Notices were uploaded on the GST portal and emails were attempted but bounced back. The Department cannot be faulted solely on email bounce if properly uploaded.
  2. Opportunity of Hearing: The Petitioner failed to prove non‑receipt of notices conclusively and thus could not show denial of hearing with merit.
  3. Relief Grant: Since the Petitioner acquired knowledge of the order only in June 2025 — significantly after the date of the order — it was permitted to:
    • File the appeal despite expiry of limitation.
    • File the appeal by 31st October 2025 along with necessary pre‑deposit.

The appeal shall be entertained on merits and not dismissed merely on the ground of limitation. 

Important Legal Clarifications

Serving notices on the GST portal and via email — even if email bounces — may be considered valid, provided the portal upload is proper.

Mere absence of physical receipt does not automatically imply denial of natural justice unless non‑service is clearly proved.

Demonstrable knowledge of order date is relevant for limitation under GST appeals. 

SECTIONS & LEGAL Principles INVOLVED

  • Natural Justice / Audi Alteram Partem
  • GST Law: Principles of service and communication under GST regime (GST Portal upload, email/registered post)
  • Limitation in GST appeals (Extended in view of delayed knowledge of order)

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/PMS23092025CW97912025_180140.pdf

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