Facts of the Case

The Petitioner, D J Associates, filed the present writ petition under Articles 226 and 227 of the Constitution challenging:

  • A Show Cause Notice dated 14 May 2024 relating to FY 2019–20
  • A consequent adjudication order dated 24 August 2024, passed by the Sales Tax Officer

The Petitioner also challenged the validity of certain GST notifications extending limitation periods.

The adjudicating authority passed an ex parte order creating tax demand, interest, and penalty, on the ground that:

  • The Petitioner did not file a reply to the SCN
  • The Petitioner did not appear for personal hearing, despite reminders

Issues Involved

  1. Whether the impugned adjudication order passed ex parte is violative of principles of natural justice?
  2. Whether the Petitioner was denied adequate opportunity to respond and be heard?
  3. Whether the GST Notifications extending limitation are valid under Section 168A of the CGST Act?
  4. Whether relief can be granted without deciding the constitutional validity of such notifications?

Petitioner’s Arguments

  • The impugned order is non-speaking, cryptic, and vague
  • No effective opportunity of hearing was provided
  • The order was passed in violation of principles of natural justice
  • The Petitioner was unable to file a reply and contest the SCN properly
  • Therefore, the entire proceedings are liable to be set aside 

Respondent’s Arguments

  • The SCN was duly issued under Section 73 CGST/DGST Act
  • Multiple opportunities were granted, including:
    • Notice through DRC-01
    • Reminder via GST portal
  • The Petitioner:
    • Failed to file reply
    • Did not appear for hearing
  • Hence, the authority was justified in passing an ex parte order under law

Court’s Findings / Order

The Delhi High Court held:

  • The Petitioner was not afforded a proper opportunity of hearing
  • The adjudication order was passed without ensuring effective participation
  • This constitutes violation of principles of natural justice

Key Directions:

  • The impugned order dated 24 August 2024 is set aside
  • The Petitioner is granted time till 10 July 2025 to file reply to SCN
  • The Adjudicating Authority shall:
    • Provide personal hearing
    • Pass a fresh reasoned order 

Important Clarifications by the Court

  • The issue regarding validity of GST Notifications is:
    • Kept open
    • Subject to outcome of Supreme Court proceedings (SLP No. 4240/2025)
  • Any fresh order passed shall be:
    • Subject to Supreme Court’s final decision
  • All rights and remedies of parties are:
    • Expressly preserved

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/PMS06052025CW157262024_124958.pdf

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