Facts of the Case

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

  • Show Cause Notice (SCN) dated 22.05.2024 for FY 2019–20
  • Consequential adjudication order dated 11.08.2024

The Petitioner also challenged the validity (vires) of multiple GST Notifications, including:

  • Notification No. 9/2023-Central Tax
  • Notification No. 56/2023-Central Tax
  • Corresponding State Notifications

The core grievance of the Petitioner was that:

  • No proper opportunity was given to file a reply to the SCN
  • No effective personal hearing was granted
  • The adjudication order was passed ex-parte and was vague and non-speaking 

Issues Involved

  1. Whether the adjudication order passed without granting an opportunity of hearing violates principles of natural justice?
  2. Whether ex-parte GST orders can be sustained when no reply is filed due to lack of opportunity?
  3. Whether the validity of GST Notifications extending limitation under Section 168A can be adjudicated when the matter is pending before the Supreme Court? 

Petitioner’s Arguments

  • The impugned order was passed without giving a fair opportunity to respond to the SCN
  • No personal hearing was granted before passing the order
  • The order is non-speaking, cryptic, and vague
  • The entire proceedings violate principles of natural justice
  • The GST notifications extending limitation were also challenged as being ultra vires Section 168A of the CGST Act 

Respondent’s Arguments

  • The adjudicating authority provided sufficient opportunities
  • The Petitioner failed to file any reply or appear for hearing
  • The order was passed due to non-cooperation by the taxpayer
  • The demand was created based on available records and statutory provisions

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 considering the Petitioner’s case on merits
  • Principles of natural justice were violated

Key Directions

  • The impugned order was set aside
  • Petitioner was granted time to file reply to SCN till 10th July 2025
  • Adjudicating Authority to:
    • Provide personal hearing
    • Pass a fresh, reasoned order
  • GST Portal access to be restored for compliance

Further, the Court clarified:

  • The issue of validity of GST Notifications remains open
  • Final outcome will be subject to Supreme Court decision in:
    • M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors.

Important Clarification

  • The Court did not decide the vires of GST Notifications
  • The matter is pending before the Supreme Court due to conflicting High Court judgments
  • Relief was granted purely on procedural grounds (natural justice) 

Sections Involved

  • Article 226 & 227 of the Constitution of India
  • Section 73, CGST Act, 2017 (Adjudication of tax liability)
  • 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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