Facts of the Case

The Petitioner, M/s Trans India Logistics, challenged:

  • Show Cause Notice (SCN) dated 29.09.2023
  • Adjudication Order dated 23.12.2023

The primary grievance was that:

  • The SCN was uploaded only under the “Additional Notices” tab on the GST portal.
  • The Petitioner was unaware of the SCN and therefore:
    • Could not file a reply
    • Could not attend the personal hearing

As a result, the adjudicating authority passed an ex parte order, raising tax demand and penalties.

Additionally, the petition also challenged the validity of certain GST Notifications issued under Section 168A. 

Issues Involved

  1. Whether an adjudication order passed without proper communication of SCN violates principles of natural justice?
  2. Whether uploading SCN in a non-prominent tab of GST portal constitutes valid service?
  3. Whether the impugned GST notifications extending limitation under Section 168A are valid? 

Petitioner’s Arguments

  • The SCN was never properly communicated; it was only placed in the “Additional Notices” tab.
  • No effective opportunity to respond or be heard was provided.
  • The adjudication order was passed ex parte, violating natural justice.
  • The GST notifications extending limitation were issued contrary to statutory requirements under Section 168A.

Respondent’s Arguments

  • The notice was uploaded on the GST portal, hence deemed served.
  • The department argued that procedural compliance had been followed.
  • Relied on system-based communication through GST portal. 

Court’s Findings / Order

The Delhi High Court held:

1. Violation of Natural Justice

  • The Petitioner did not get a fair opportunity to reply to the SCN.
  • Uploading the notice in a non-prominent tab without proper intimation is insufficient.

2. Ex Parte Order Unsustainable

  • Orders passed without hearing the affected party cannot be sustained.

3. Reliance on Earlier Judgments

  • The Court followed precedents where similar GST portal issues led to remand.

4. Final Directions

  • Impugned order set aside
  • Matter remanded to Adjudicating Authority
  • Petitioner granted time to file reply
  • Department directed to:
    • Provide proper notice
    • Ensure communication via email and other means
  • GST portal access to be restored

5. Notification Validity Left Open

  • Issue regarding validity of GST notifications kept open, subject to Supreme Court decision.

Important Clarification

  • Uploading notices in hidden or less-visible sections of the GST portal does not amount to valid service.
  • Authorities must ensure effective and real communication, not merely technical compliance.
  • Adjudication must follow fair hearing principles, especially in tax matters involving penalties.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/PMS30072025CW96342025_131140.pdf

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