High Court Sets Aside GST Appellate Order for Denial of Opportunity to Reply to Show Cause Notice

The High Court set aside the appellate order after finding that the petitioner had not been given a proper opportunity to respond to the GST Show Cause Notice.

The petitioner, Sunil Batra, challenged an order dated 9 October 2025 passed by the GST appellate authority under the West Bengal GST Act and the Central GST Act. According to the authorities, a Show Cause Notice (DRC-01) had been issued on 24 December 2023, asking the petitioner to explain why tax, interest, and penalty should not be recovered from him.

The petitioner submitted that he was not effectively served with the notice. He stated that the notice and the subsequent communication were uploaded on the GST portal under the section “Additional Notice and Orders” and, as such, he was not aware of the proceedings which prevented him from filing a reply.

He further submitted that he came to know about the Show Cause Notice and the subsequent adjudication order dated 12 March 2024, on the information of a newly appointed accountant. The Court felt that principles of natural justice required that he be allowed to present his defence.

Accordingly, the Court directed the petitioner to file a reply to the Show Cause Notice relating to the financial year 2018-19 within four weeks. The GST authorities have been directed to consider the reply, provide the petitioner with a hearing, and pass a reasoned order within eight weeks thereafter. The decision must then be communicated to the petitioner within one week.

With these directions, the writ petition was disposed of. It also clarified that since no affidavit-in-opposition had been called for, the allegations made in the writ petition would be treated as denied by the respondents.

The Court further directed that an urgent certified copy of the order be supplied to the parties if applied for.