Facts of the Case

The Petitioner, M/s Raj International, challenged the Orders-in-Original dated 14 January 2025 and 3 February 2025 passed by the Central Tax authorities.

The primary grievance of the Petitioner was that:

  • Written submissions were duly uploaded on the GST portal.
  • However, the same were not considered by the Department.
  • No effective personal hearing notice was received.

The Court directed the Petitioner to produce proof of submission on the GST portal, which confirmed that submissions were indeed uploaded. On the other hand, the Department claimed that notice of personal hearing was sent via email, which was disputed by the Petitioner.

Issues Involved

  1. Whether the non-consideration of written submissions uploaded on the GST portal violates principles of natural justice.
  2. Whether failure of effective communication of personal hearing notice renders the adjudication invalid.
  3. Whether compliance with Section 169 of the CGST Act, 2017 was properly ensured.

Petitioner’s Arguments

  • The Petitioner had duly filed a detailed reply to the show cause notice explaining discrepancies in Input Tax Credit (ITC).
  • The GST portal clearly reflected submission of written replies.
  • The impugned orders incorrectly recorded that no reply was filed.
  • No valid or effective personal hearing opportunity was provided.
  • The entire adjudication process was conducted in violation of principles of natural justice.

Respondent’s Arguments

  • The Department contended that:
    • Personal hearing notice was sent through the registered email address.
    • Adequate opportunities were provided to the Petitioner.
  • It was argued that the adjudication was conducted based on available records due to non-appearance of the Petitioner. 

Court Findings / Order

The Delhi High Court observed:

  • The Petitioner’s reply was indeed uploaded but not considered by the Department.
  • The impugned orders wrongly recorded that no reply had been filed.
  • There was clear miscommunication between the parties.
  • Effective opportunity of personal hearing was not provided.

Held:

  • The impugned orders were set aside only qua the Petitioner.
  • The matter was remanded back to the Department for fresh adjudication.
  • Directions were issued to ensure proper service of notice via:
    • GST portal
    • Email
    • Mobile communication
    • Speed post 

Important Clarification by Court

  • The Court emphasized strict compliance with Section 169 of the CGST Act, 2017.
  • Authorities must ensure multi-mode service of notices, including:
    • GST portal
    • Registered email
    • Mobile number
    • Physical dispatch
  • The Court also directed improvement and streamlining of Standard Operating Procedures (SOPs) for litigation handling.

Sections Involved

  • Section 169, Central Goods and Services Tax Act, 2017 – Service of notice
  • Principles of Natural Justice (Audi Alteram Partem)

Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/PMS25042025CW40962025_104908.pdf

 

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.