High Court sets aside ex-parte GST demand of 20.69 lakh; directs fresh adjudication with personal hearing, subject to Rs. 10,000 cost
Meetu Kumari | Oct 4, 2025 |
Natural Justice Violation: Delhi HC Quashes GST Demand Order of Rs. 20.69 Lakh Passed Without Effective Hearing
The petitioner filed a writ petition challenging a Show Cause Notice (SCN) dated 22.05.2024 and the consequent order dated 28.08.2024 passed by the Sales Tax Officer Class II/AVATO, Delhi, raising a demand of Rs. 20,69,990/-. The petitioner also challenged Notification Nos. 56/2023-Central Tax and 56/2023-State Tax extending limitation, arguing that they were issued without proper GST Council recommendation or beyond prescribed timelines. The case was heard along with similar petitions, where courts across India had taken divergent views, and the issue is now pending before the Supreme Court in SLP No. 4240/2025.
The petitioner sought adjournment of the personal hearing but did not file any reply to the SCN and later claimed denial of opportunity. The adjudicating authority proceeded ex-parte, holding that despite repeated opportunities, no satisfactory response was filed, and issued a demand with a penalty. The petitioner argued that the absence of a second hearing notice invalidated the proceedings.
Issue Raised: Whether the GST demand order of Rs. 20.69 lakh passed without considering the petitioner’s adjournment request and without an effective opportunity of reply/hearing was sustainable in law.
HC’s Order: The Delhi High Court held that while the validity of the impugned notifications is pending before the Supreme Court, the ex-parte order against the petitioner could not be sustained in the interest of natural justice. The Court noted that the petitioner failed to file a reply despite adjournment but still deserved a fair opportunity to present its case. Therefore, the impugned order was set aside, subject to the petitioner depositing costs of Rs. 10,000 with the GST Department.
The Court granted time till 31.10.2025 for filing a reply to the SCN and directed the adjudicating authority to provide a personal hearing, duly communicated via email and mobile. It clarified that any fresh order would remain subject to the Supreme Court’s decision on the notifications in SLP No. 4240/2025 and related proceedings. Access to the GST portal for uploading replies was also directed to be provided within one week.
To Read Full Judgment, Download PDF Given Below
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
