High Court holds that GST appellate authorities cannot reserve and deliver judgments later without notifying parties; matter remanded for fresh hearing.
Meetu Kumari | Nov 18, 2025 |
High Court: GST Appeal Cannot Be Reserved & Delivered Later Without Notice; Order Quashed
The assessee in this case was engaged in manufacturing and selling glass bottles. In March 2021, the company claimed input tax credit (ITC) on chemicals purchased from registered dealers. Thereafter, a show cause notice was issued against the assessee under Section 74(1) of the GST Act alleging fraudulent ITC. The assessee filed a detailed reply with invoices, bank statements, and GSTR-2A, but still the Adjudicating Authority passed an order demanding tax and penalty without supplying the survey report or granting a personal hearing. Aggrieved, the petitioner challenged the said order in appeal.
Appeal before Additional Commissioner (Appeals): During appellate proceedings, the hearing took place on 18.09.2024, and the matter was reserved for judgment the same day. However, the appellate order was issued later on 25.09.2024 without notifying the petitioner or holding any further hearing.
Issue Raised Before HC: Whether an appellate authority under the GST Act may reserve judgment and pronounce it later without notifying the assessee or providing further opportunity of hearing.
HC’s Decision: The Hon’ble High Court observed that the Additional Commissioner (Appeals) failed to identify any statutory provision or notification empowering the authority to reserve judgment and deliver it later without notice. The personal affidavit filed before the Court was silent on any such enabling power. Relying on its own earlier decision in M/s Wonder Enterprises, the Court held that such a practice infringes and breaches the principles of natural justice and cannot be sustained in law.
The Court set aside the appellate order dated 25.09.2024, and the matter was remanded for fresh consideration. The Additional Commissioner (Appeals) was directed to conduct a de novo hearing, grant proper opportunity to all stakeholders, and decide the appeal within three months from the date the certified copy of the order is produced.
To Read Full Judgment, Download PDF Given Below
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