High Court remands GST demand on grounds of lack of hearing, imposes costs, and keeps vires of Notification 56/2023 open pending the Supreme Court’s decision
Meetu Kumari | Nov 18, 2025 |
Delhi HC Remands GST Demand amid GST Notification Challenge Pending SC Outcome
Ms. Markex Branding Solutions Pvt. Ltd. filed a writ petition challenging (i) a Show Cause Notice dated 28 May 2024 and (ii) a consequential adjudication order dated 20 August 2024 for FY 2019–20, both issued by the Sales Tax Officer, Ward 41, Delhi. The petition also assailed Notification No. 56/2023 (Central Tax) and its State counterpart, on grounds already pending adjudication in several connected matters before various High Courts. A detailed order passed by the Delhi High Court on 22 April 2025 in the lead petition DJST Traders Pvt. Ltd. had noted conflicting High Court views and that the Supreme Court was seized of the issue in SLP No. 4240/2025 involving the same notification, prompting the Delhi High Court to refrain from ruling on the vires for the time being.
Issue Raised: Whether the ex-parte adjudication order issued without considering any reply or appearance deserved to be set aside and remanded, pending the Supreme Court’s decision on the validity of Notifications 56/2023.
HC’s Order: The Delhi High Court set aside the adjudication order solely on the ground that the petitioner had not been afforded a proper opportunity to respond to the SCN, noting that the SCN challenge is intertwined with issues pending before the Supreme Court. However, given the petitioner’s non-responsive conduct, the Court imposed costs of ₹25,000 to be deposited with the Sales Tax Bar Association as a precondition for remand. Upon proof of deposit, the petitioner may file a reply to the SCN by 15 December 2025, after which the adjudicating authority must grant a fresh personal hearing, communicate notices to the specified email and mobile number, and pass a fresh order on merits.
The Court clarified that the vires challenge to the impugned notifications is expressly kept open and the remand order shall abide by the earlier Supreme Court’s decision. Access to the GST portal must be restored within one week to enable filing.
To Read Full Judgment, Download PDF Given Below
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