Facts of the Case

The Petitioner, The Punjab State Cooperative Milk Producers Federation Ltd., filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the Order-in-Original dated 30 January 2025 passed under Section 74 of the Central Goods and Services Tax Act, 2017.

The grievance of the Petitioner was that the Show Cause Notice (SCN) dated 15 November 2022 was never properly served and was received only later through a communication dated 02 March 2023.

It was submitted that the Department had been using three different addresses of the Petitioner, leading to confusion. The SCN was sent to an incorrect address (East Patel Nagar), whereas the correct and current address was at Karol Bagh. Due to this discrepancy, the Petitioner did not receive the SCN in time and was deprived of an opportunity to participate in personal hearings.

Issues Involved

  1. Whether improper service of Show Cause Notice vitiates proceedings under Section 74 of the CGST Act.
  2. Whether passing an order without granting an opportunity of personal hearing violates principles of natural justice.
  3. Whether errors in address records attributable to the assessee can justify denial of opportunity.

Petitioner’s Arguments

  • The SCN was never served at the correct address and hence was not received in time.
  • The Department was aware of the correct address (Karol Bagh), yet continued to use an incorrect address.
  • Due to improper service, the Petitioner could not attend personal hearings.
  • The impugned order was passed in violation of principles of natural justice. 

Respondent’s Arguments

  • The incorrect address (East Patel Nagar) was reflected in the Petitioner’s own records submitted earlier.
  • The Department relied upon the address available in official filings.
  • Therefore, the service of SCN and notices cannot be entirely faulted on the Department.

Court’s Findings / Order

  • The Delhi High Court observed that the Petitioner did not get a fair opportunity to present its case due to confusion in addresses.
  • The Court set aside the impugned Order-in-Original dated 30 January 2025.
  • The Court directed that:
    • A fresh opportunity of personal hearing be granted.
    • Notices be served via specified email addresses and uploaded on the GST portal.
    • Only one opportunity shall be granted, and failure to attend would result in no further relief.
  • The Court further clarified that limitation for passing the order pursuant to SCN would not apply in this case.
  • The Petitioner was directed to update its GST records within 15 days. 

Important Clarifications by Court

  • Relief granted was based on unique facts and should not be treated as a general precedent.
  • The Petitioner waived any challenge to jurisdiction of the issuing authority.
  • The matter shall now be adjudicated by the appropriate Commissionerate based on the correct address. 

Sections Involved

  • Section 74 of the Central Goods and Services Tax Act, 2017
  • Articles 226 & 227 of the Constitution of India
  • Principles of Natural Justice

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/68928042025CW53492025_131907.pdf

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