HC Remands GST Demand Where Assessee Missed SCN After Surrender of Registration

The petitioner, M/s Padam Kishore & Company, challenged a show cause notice and an ex-parte adjudication order passed for the tax period April 2019 to March 2020, confirming GST demand against it. The petitioner also assailed Notification Nos. 56/2023 (Central and State Tax) and 09/2023 (Central and State Tax) issued under Section 168A of the CGST Act.

Petitioner’s GST registration had been surrendered prior to issuance of the show cause notice and adjudication order, and therefore the GST portal was not being regularly monitored. Thus, no reply was filed and no personal hearing was attended, leading to an ex-parte order.

Issue Before High Court: Whether an ex-parte GST adjudication order can be sustained when no effective opportunity of hearing was afforded, and whether the validity of Section 168A notifications should be examined while the issue is pending before higher courts.

HC’s Verdict: The Hon’ble High Court held that the petitioner was denied a proper opportunity of being heard, as no reply to the show cause notice was filed and the adjudication order was passed ex-parte. Following its consistent view in similar matters, the Court set aside the impugned order and remanded the matter to the adjudicating authority.

The petitioner was granted time till 31.01.2026 to file a reply to the show cause notice. Upon filing of the reply, the adjudicating authority was directed to issue a personal hearing notice through the petitioner’s specified email and mobile number and thereafter pass a fresh reasoned order in accordance with law. Access to the GST portal was directed to be restored within one week.

The Court clarified that the challenge to the notifications issued under Section 168A of the CGST Act was left open and that any fresh order would remain subject to the outcome of proceedings pending before the Supreme Court and the Hon’ble High Court.

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