Delhi High Court Quashes GST Order for Lack of Proper Hearing, Remands Matter to Adjudicating Authority

The Delhi High Court, in its recent judgement dated December 10, 2025, has ruled in favour of a company by quashing a Non-Speaking GST Order.

The petitioner company, M/s Seaton Impex, had received a show cause notice dated May 21, 2024, for the tax period April 2019 to March 2020. Even though the GST department issued a reminder notice in June 2024, the petitioner company failed to reply to it and did not even attend the personal hearing. This resulted in passing a final order raising GST demands from the petitioner.

Therefore, the petitioner filed a writ before the Delhi High Court challenging the said SCN and GST Order, along with the validity of Notification No. 56/2023-Central Tax. The petitioner claimed that this notification was improperly issued.

The High Court observed that the petitioner was not given a fair chance to respond to the show cause notice, making the order a non-speaking order. Therefore, the court set aside the order and directed the company to file its reply to the SCN by 15th January 2026, after which a personal hearing will be scheduled. However, the court imposed a cost of Rs 10,000 on the petitioner as a payment to the Delhi High Court Staff Welfare Association.

Regarding the validity of the notification, the High Court said that it is left open, as the issue is still under consideration by the Supreme Court.