Facts of the Case

The Petitioner, RSA Impex LLP, challenged:

  • A Show Cause Notice dated 31.05.2024, and
  • A final adjudication order dated 20.08.2024,

wherein a demand of ₹13,38,244 was raised.

Key factual aspects:

  • A reminder notice fixed 19.07.2024 as the deadline for reply.
  • The Petitioner filed the reply on 24.07.2024 (5 days delay).
  • A personal hearing (PH) was scheduled on 19.07.2024 but not attended.
  • After filing the reply, the Petitioner requested a hearing, which was not granted.
  • The adjudicating authority passed an ex-parte order, allegedly without considering the reply.

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

Issues Involved

  1. Whether the adjudication order is valid when:
    • The reply filed by the assessee was not considered, and
    • Personal hearing was effectively denied.
  2. Whether passing an ex-parte order violates principles of natural justice.
  3. Whether extension notifications under Section 168A CGST Act are valid (issue kept open due to pendency before Supreme Court).

Petitioner’s Arguments

  • The adjudicating authority failed to apply its mind.
  • The reply filed on 24.07.2024 was not considered at all.
  • Despite requesting, personal hearing was not granted, violating natural justice.
  • The order contained standard, mechanical observations without dealing with submissions. 

Respondent’s Arguments

  • The Department contended that:
    • A personal hearing opportunity was already granted, but
    • The Petitioner failed to attend the same.

Court’s Findings / Order

The Delhi High Court held:

  • The reply was indeed filed by the Petitioner and was not considered.
  • The impugned order contained only a cryptic, one-line rejection.
  • Such an approach violates principles of natural justice.

Order:

  • The impugned order dated 20.08.2024 was set aside.
  • The adjudicating authority was directed to:
    • Consider the reply dated 24.07.2024,
    • Provide a fresh personal hearing,
    • Pass a reasoned order within 3 months. 

Important Clarifications by Court

  • The Court did not decide the validity of GST Notifications.
  • The issue regarding Section 168A notifications is:
    • Pending before the Supreme Court in M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax.
  • Any fresh order will be:
    • Subject to the outcome of Supreme Court proceedings.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/68907072025CW91142025_142743.pdf 

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