Facts of the Case

The Petitioner, Aayushi Hygiene and Care Private Limited, filed a writ petition under Article 226 of the Constitution of India challenging:

  • Show Cause Notice (SCN) dated 29 May 2024, and
  • Consequent adjudication order dated 02 August 2024

issued by the Department of Trade & Taxes, GNCTD for FY 2019–20.

The Petitioner also challenged the validity (vires) of:

  • Notification No. 56/2023 – Central Tax
  • Notification No. 9/2023 – Central Tax
  • Notification No. 9/2023 – State Tax

The primary grievance was that the SCN was uploaded under the “Additional Notices Tab” on the GST portal and was not visible to the Petitioner, resulting in:

  • No reply being filed
  • No participation in personal hearing
  • Passing of an ex-parte order raising demand and penalties

Issues Involved

  1. Whether an adjudication order passed without proper communication of SCN violates principles of natural justice?
  2. Whether uploading notices under the “Additional Notices Tab” amounts to valid service?
  3. Whether the Petitioner should be granted an opportunity to file reply and be heard?
  4. Whether the challenge to GST Notifications issued under Section 168A CGST Act, 2017 can be decided at this stage? 

Petitioner’s Arguments

  • The SCN was not effectively communicated as it was uploaded in a non-visible tab (“Additional Notices”).
  • Due to lack of knowledge, the Petitioner could not:
    • File reply
    • Attend personal hearing
  • The adjudication order was passed in violation of principles of natural justice.
  • The impugned notifications extending limitation are legally questionable. 

Respondent’s Arguments

  • The Department contended that:
    • The SCN was issued after 16 January 2024, when portal issues had been rectified.
    • Notices were made visible on the GST portal after system improvements.
  • Therefore, the Petitioner cannot claim lack of notice.

Court’s Findings / Order

The Delhi High Court held:

  • There was lack of proper opportunity of hearing to the Petitioner.
  • Even though portal improvements were made, the facts indicated that:
    • The Petitioner did not effectively receive the SCN
    • No reply was filed due to lack of awareness

Key Directions:

The impugned order dated 02 August 2024 was set aside
 Matter remanded to the Adjudicating Authority
 Petitioner allowed to:

  • File reply to SCN by 10 July 2025
  • Participate in personal hearing

Department directed to:

  • Send hearing notices via email and mobile communication
  • Provide proper access to GST portal

Fresh order to be passed after considering:

  • Reply
  • Submissions during hearing

Important Clarifications by Court

  • The issue regarding validity of GST Notifications (Section 168A) is:
    • Kept open
    • Subject to outcome of pending Supreme Court proceedings
  • The final adjudication will be governed by:
    • Supreme Court decision in SLP No. 4240/2025 (M/s HCC-SEW-MEIL-AAG JV case)
    • Related Delhi High Court batch matters
  • All rights and remedies of parties remain open 

Sections / Legal Provisions Involved

  • Article 226 – Constitution of India
  • Section 73 – CGST Act, 2017 (Adjudication of tax demand)
  • Section 168A – CGST Act, 2017 (Extension of time limits)
  • Principles of Natural Justice (Audi Alteram Partem)

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/PMS07052025CW60182025_155921.pdf

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