Facts of the Case

The petitioner, a civil services coaching institute, challenged:

  • A Show Cause Notice (SCN) dated 21 May 2024, and
  • A consequential adjudication order dated 22 August 2024

The petitioner also challenged the validity of various GST notifications issued under Section 168A, which extended timelines for adjudication.

The petitioner contended that due to extraordinary circumstances, including tragic incidents and the arrest of its CEO, it was unable to access the GST portal, respond to notices, or participate in proceedings, leading to an ex-parte order. 

Issues Involved

  1. Whether the petitioner should be granted an opportunity to reply to the SCN despite passing of an ex-parte order.
  2. Whether the validity of GST Notifications issued under Section 168A affects the proceedings.
  3. Whether adjudication orders passed without proper opportunity violate principles of natural justice.

Petitioner’s Arguments

  • The SCN and related notices were not accessed due to unavoidable and exceptional circumstances.
  • The petitioner was prevented from filing a reply and attending hearings.
  • The adjudication order was passed ex-parte, causing prejudice.
  • The impugned notifications extending limitation periods were legally questionable and under challenge.

Respondent’s Arguments

  • The SCN and notices were duly issued through the GST system.
  • Proceedings were conducted in accordance with statutory provisions.
  • The petitioner failed to respond within prescribed timelines.

Court’s Findings / Observations

  • The Court noted that:
    • The validity of GST notifications under Section 168A is already pending before the Supreme Court.
    • There exists divergence of opinions among various High Courts on these notifications.
  • The Court emphasized:
    • Principles of natural justice must be upheld.
    • Petitioners should be given a fair opportunity to present their case, especially where ex-parte orders are passed due to genuine reasons.

Court Order

  • The impugned adjudication order was set aside.
  • The petitioner was granted:
    • Time to file a reply to the SCN by 31 August 2025.
    • Access to the GST portal for submitting responses.
    • Opportunity of personal hearing with proper communication.
  • The adjudicating authority was directed to:
    • Decide the matter afresh in accordance with law after considering the reply. 

Important Clarification by the Court

  • The Court did not decide the validity of the GST notifications.
  • It clarified that:
    • The issue remains open and subject to the outcome of Supreme Court proceedings in M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors.
    • Any order passed shall be subject to the final decision of the Supreme Court.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/68915072025CW98912025_120923.pdf

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