Facts of the Case

The Petitioner, Techcoral Solutions, challenged:

  • Show Cause Notice (SCN) dated 26 September 2023
  • Consequential adjudication order dated 14 December 2023
  • Various GST Notifications including Notification No. 56/2023 and 09/2023 (Central & State Tax)

The core grievance was that the SCN was uploaded under the ‘Additional Notices’ tab on the GST portal, and was not brought to the Petitioner’s knowledge, resulting in:

  • No reply being filed
  • No participation in adjudication proceedings
  • Passing of an ex-parte order with demand and penalties

The Petitioner argued denial of a fair opportunity of hearing. 

Issues Involved

  1. Whether uploading SCN under the ‘Additional Notices’ tab constitutes valid service.
  2. Whether an adjudication order passed without proper notice and opportunity of hearing is sustainable.
  3. Whether relief can be granted independent of the pending constitutional challenge to GST notifications under Section 168A.
  4. Whether procedural lapses on GST portal can vitiate adjudication proceedings. 

Petitioner’s Arguments

  • The SCN was not properly communicated, as it was only uploaded under the ‘Additional Notices’ tab.
  • Due to lack of knowledge:
    • No reply could be filed
    • No personal hearing was attended
  • The adjudication order was passed ex-parte, violating principles of natural justice.
  • The GST portal interface at the relevant time was unclear and did not adequately notify taxpayers.
  • Reliance placed on similar Delhi High Court rulings where matters were remanded in identical circumstances.

Respondent’s Arguments

  • The SCN was duly uploaded on the GST portal.
  • The system has since been improved, making the ‘Additional Notices’ tab more visible.
  • The issue is covered by earlier judicial precedents where remand was considered appropriate. 

Court’s Findings / Order

The Delhi High Court held:

  • The SCN being uploaded only under the ‘Additional Notices’ tab did not ensure effective communication.
  • The Petitioner was denied a fair opportunity to respond, leading to violation of natural justice.
  • Reliance was placed on earlier judgments including:
    • Neelgiri Machinery case
    • Satish Chand Mittal case
    • ACE Cardiopathy Solutions Pvt. Ltd.
    • Kamla Vohra case

Order Passed

  • The impugned adjudication order was set aside.
  • Matter remanded to Adjudicating Authority.
  • Petitioner allowed:
    • To file reply by 31 August 2025
    • To be granted personal hearing
  • Department directed:
    • To communicate notices via email and mobile
    • To provide GST portal access
  • Fresh order to be passed after considering submissions

Important Clarifications by Court

  • Changes in GST portal (post 16 January 2024) making notices visible cannot cure past defects.
  • Proper service of notice is mandatory for valid adjudication.
  • Issue regarding validity of GST Notifications under Section 168A:
    • Left open
    • Subject to outcome of Supreme Court proceedings in SLP No. 4240/2025 (M/s HCC-SEW-MEIL-AAG JV case)

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/PMS17072025CW78732025_110550.pdf  

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