Facts of the Case

The Petitioner, G-Technologies, filed a writ petition under Articles 226 and 227 of the Constitution challenging:

  • Show Cause Notice (SCN) dated 22 May 2024 for FY 2019–20
  • Consequential adjudication order dated 11 August 2024
  • Certain GST Notifications issued under Section 168A extending limitation periods

The grievance of the Petitioner was that:

  • No effective opportunity was provided to file a reply to the SCN
  • No personal hearing was granted
  • The adjudication order was passed ex-parte, raising demand and penalties
  • The order was cryptic and non-speaking

Additionally, the Petitioner challenged the validity of Notifications No. 9/2023 and 56/2023 (Central & State Tax), relating to extension of limitation periods under GST law. 

Issues Involved

  1. Whether an adjudication order passed without granting opportunity of hearing violates principles of natural justice?
  2. Whether ex-parte GST adjudication orders based on non-response to SCN are sustainable?
  3. Whether the validity of Notifications issued under Section 168A of the CGST Act can be adjudicated when the issue is pending before the Supreme Court?
  4. Whether relief can be granted independent of the challenge to the vires of notifications? 

Petitioner’s Arguments

  • The SCN and adjudication order were passed without providing adequate opportunity to respond
  • No personal hearing was granted, violating principles of natural justice
  • The order was non-speaking, vague, and arbitrary
  • The Petitioner was unable to file reply due to circumstances beyond control
  • The impugned notifications extending limitation were ultra vires Section 168A, as proper GST Council recommendation procedure was not followed

Respondent’s Arguments

  • The taxpayer was given multiple opportunities but failed to respond
  • No reply or appearance was made during adjudication
  • The authority was left with no option but to pass the order and raise demand
  • Notifications extending limitation were issued under statutory powers 

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 hearing the Petitioner, violating natural justice
  • Even if opportunities were recorded, effective opportunity must be real and meaningful

Order:

  • Impugned adjudication order set aside
  • Petitioner allowed to file reply to SCN till 10 July 2025
  • Adjudicating authority directed to:
    • Provide personal hearing
    • Pass a fresh reasoned order after considering submissions
  • GST portal access to be restored for compliance

Important Clarification by Court

  • The issue regarding validity of GST Notifications (Section 168A) is kept open
  • Final outcome shall depend upon:
    • Supreme Court decision in M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors.
    • Delhi High Court proceedings in connected matters
  • All rights and remedies of parties remain open

Sections Involved

  • Article 226 & 227 – Constitution of India
  • Section 73 – CGST Act, 2017
  • Section 168A – CGST Act, 2017 (Extension of time limits)

Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/68906052025CW157142024_165721.pdf

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