Facts of the Case

The Petitioner, Khaleeque Ahmed, proprietor of M/s Mark Ad Grafix, filed a writ petition under Article 226 of the Constitution of India challenging an order dated 5th May 2024 passed by the Superintendent, CGST.

The grievance of the Petitioner arose from procedural irregularities in the adjudication process under GST law. It was contended that although a pre-notice consultation and Show Cause Notice (SCN) were allegedly issued by the Department, the same were neither uploaded on the GST portal nor properly communicated.

Further, the impugned order, though signed on 30th April 2024, was uploaded only on 5th May 2024, raising questions regarding limitation compliance. 

Issues Involved

  1. Whether the Show Cause Notice dated 29th November 2023 was validly communicated to the Petitioner.
  2. Whether the impugned order is barred by limitation in terms of Notification No. 56/2023-Central Tax dated 28th December 2023.
  3. Whether delay in uploading Form DRC-07 affects the validity of the adjudication order.
  4. Whether the GST Department followed proper procedural compliance in issuance of notices and orders.

Petitioner’s Arguments

  • The Show Cause Notice was never communicated through the GST portal or by proper electronic means, thereby violating principles of natural justice.
  • Mere dispatch by speed post without portal upload is insufficient under GST procedural framework.
  • The impugned order was uploaded after the statutory deadline of 30th April 2024, making it time-barred.
  • The delay in uploading Form DRC-07 renders the order invalid and unenforceable.

Respondent’s Arguments

  • The Department contended that pre-notice consultation and SCN were dispatched via speed post on 16th October 2023 and 29th November 2023 respectively.
  • However, it was conceded that the said documents were not uploaded on the GST portal.
  • It was also submitted that the impugned order was signed within limitation (30th April 2024), though uploaded later.

Court Findings / Order

  • The Court acknowledged procedural lapses, particularly non-uploading of SCN and communications on the GST portal.
  • It noted inconsistency in departmental practices regarding service of notices and issuance of orders.
  • The Court observed that although the order was signed within limitation, delay in uploading creates ambiguity and disputes.
  • Directions were issued to the GST Department to standardize procedures.
  • The Court directed filing of a short affidavit addressing both case-specific facts and formulation of SOP.
  • No coercive steps were permitted against the Petitioner pending further proceedings. 

Important Clarifications (Key Takeaways / Ratio)

  • Service of SCN must be effective and preferably through the GST portal and email, not merely speed post.
  • Date of upload of order is crucial and may impact limitation disputes.
  • Consistency and transparency in GST procedures are mandatory.
  • Courts may intervene where procedural irregularities affect natural justice.
  • The GST Department is obligated to ensure proper documentation including DIN, signatures, and timely uploads.

Sections / Legal Provisions Involved

  • Article 226 of the Constitution of India
  • Notification No. 56/2023-Central Tax dated 28.12.2023
  • Relevant provisions under the CGST Act relating to:
    • Show Cause Notice issuance
    • Adjudication orders
    • Form DRC-07

Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/PMS16052025CW64882025_151153.pdf

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