Nidhi | Aug 12, 2025 |
GST: Delhi HC Sets Aside Demand for Lack of Uploaded SCN & RUDs; Allows Fresh Hearing
The Delhi High Court has recently set aside a Rs 4.04 crore GST demand against a company due to a lack of proper notice and hearing.
The petitioner, Hind Paper House, received a Form DRC-01, a summary of the Show Cause Notice on 28.05.2024, demanding Rs 4,04,61,076 for the tax period between April 2019 and March 2020. It was mentioned in Form DRC-01 that the show-cause notice and the supporting documents were attached and uploaded along with Form DRC-01.
As per the petitioner, the SCN and the Relied upon Documents (RUDs) were not uploaded along with Form DRC-01. The petitioner claimed that the GST authority passed the final order without giving an opportunity for a personal hearing. Therefore, the petitioner approached the Delhi High Court, challenging the show cause notice dated 28.05.2024 and the order dated 24.08.2024.
The petitioner submitted that RUDs were served via speed post on 15.06.2024, which was after the limitation period. Additionally, Input Tax Credit (ITC) had already been reversed and was on record available with the GST department before passing the order.
On the other hand, the GST department submitted that due to a technical glitch, the SCN and RUDs were not uploaded on the portal. But the SCN and documents were sent to the petitioner on 15th June 2024. The Department also submitted that the petitioner company had sought time to submit a reply on three dates, but no reply on the merits was forthcoming.
A bench comprising Justice Pratibha M. Singh and Justice Shail Jain observed that Form DRC-01 is not enough for any person to file a reply because it does not have all the details of the allegations and the tax demand. The court further noted that there have been errors by both the Department and the Petitioner. The Department’s error was that it did not upload the entire summary, the Show cause notice and the RUDs on the portal on 18.05.2025. On the other hand, the petitioner’s fault is that, even after receiving the physical copy of SCN and RUDs on 15.06.2024, the petitioner did not submit any reply and just kept on seeking adjournments.
Therefore, the court set aside the order and directed the petitioner to raise the plea about the limitation of SCN before the Adjudication Authority.
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