Facts of the Case

The Petitioner, M/s Trans India Logistics, filed a writ petition under Articles 226 and 227 of the Constitution challenging the order dated 7th August 2024 passed by the Sales Tax Officer in respect of Financial Year 2019-20.

The impugned order raised substantial tax demand along with interest and penalty. The petitioner also challenged the vires of various GST Notifications including Notification Nos. 09/2023 and 56/2023 (Central and State Tax), issued under Section 168A of the CGST Act.

It was submitted that the Show Cause Notice (SCN) dated 21st May 2024 was not responded to as the auto-generated email alert went into the junk folder, resulting in an ex-parte adjudication order. Further, incorrect annexures relating to a third party were uploaded, rendering the order non-speaking and defective. 

Issues Involved

  1. Whether the ex-parte GST adjudication order is liable to be set aside for violation of principles of natural justice.
  2. Whether failure to respond to SCN due to technical reasons justifies grant of opportunity.
  3. Whether incorrect/irrelevant annexures render the order invalid.
  4. Whether the validity of Notifications issued under Section 168A CGST Act can be adjudicated. 

Petitioner’s Arguments

  • The SCN was not noticed due to technical glitch (email landing in junk folder).
  • No effective opportunity of hearing was granted before passing the impugned order.
  • The order is non-speaking and suffers from procedural irregularities.
  • Incorrect annexures relating to a third party were uploaded.
  • The impugned notifications extending limitation are ultra vires Section 168A CGST Act. 

Respondent’s Arguments

  • The SCN was duly issued and the petitioner failed to respond within time.
  • The adjudication order was passed in accordance with statutory provisions.
  • The petitioner had an opportunity but failed to avail it. 

Court’s Findings / Order

The Delhi High Court held that:

  • The Petitioner was not afforded a proper opportunity of hearing.
  • The SCN and adjudication proceedings resulted in an ex-parte order.
  • There were apparent discrepancies in documents uploaded by the Department.

Accordingly, the Court:

Set aside the impugned order dated 7th August 2024
 Granted time till 30th September 2025 to file reply to SCN
 Directed the Adjudicating Authority to provide personal hearing
 Directed GST portal access to be restored for compliance
 Ordered passing of a fresh reasoned order after hearing the petitioner 

Important Clarification by Court

  • The issue regarding validity of Notification Nos. 09/2023 and 56/2023 under Section 168A CGST Act is kept open.
  • The outcome of the case shall be subject to the Supreme Court decision in SLP No. 4240/2025 (M/s HCC-SEW-MEIL-AAG JV case).
  • Relief granted is limited to procedural fairness and does not decide constitutional validity of notifications. 

Sections / Provisions Involved

  • Article 226 & 227, Constitution of India
  • Section 73, CGST Act, 2017
  • Section 168A, CGST Act, 2017
  • GST Notifications No. 09/2023 & 56/2023 (Central & State Tax)

Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/PMS05082025CW116522025_170105.pdf

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