High Court Sets Aside Ex-Parte Order; Imposes Cost of Rs 10,000 on Petitioner

The Delhi High Court quashed an order, as the petitioner had not been given a proper opportunity to respond to the SCN. The Court directed the petitioner to pay a cost of Rs 10,000.

The petitioner, M/s Gupta Sanitation, filed a writ petition before the High Court challenging a GST order issued by the Sales Tax Officer and the relevant Show Cause Notice along with Notification No. 56/2023-Central Tax dated 28th December, 2023.

The petitioner was issued an SCN and a reminder notice, which they failed to reply to. It also failed to attend the personal hearing. Therefore, the petitioner argued that the final order was passed without giving an opportunity to be heard, violating natural justice. The petitioner also challenged the validity of the Notification No. 56/2023, claiming that proper procedure was not followed before issuing this Notification.

The High Court cited a judgment on the same issue in W.P.(C) 4779/2025 titled ‘Sugandha Enterprises through its Proprietor Devender Kumar Singh V. Commissioner Delhi Goods And Service Tax And Others’, where the petitioner was given relief by quashing such an order. Based on the same, the court noted that the petitioner did not get a proper opportunity to be heard, and no reply was submitted against the SCN. Therefore, the High Court quashed the GST Order, subject to payment of Rs 10,000 as a cost of the Delhi High Court Legal Services Committee.

Regarding the validity of the notification challenged by the petitioner, the High Court said that the issue is already under consideration by the Supreme Court, and the final decision will depend on that.