Facts of the Case

The petitioner, M/s Perfect Industries, challenged a Show Cause Notice dated 28th December, 2023 and the consequent adjudication order dated 20th April, 2024 passed by the Sales Tax Officer, Ward-63, Zone-6, Delhi. The petitioner also challenged Notification Nos. 9 and 56 of 2023 issued under the CGST and State GST Acts extending limitation periods under Section 168A of the CGST Act.

The petitioner contended that the show cause notice as well as the adjudication order were uploaded only under the “Additional Notices” tab on the GST portal and were not visible under the regular “Notices & Orders” tab. Consequently, the petitioner had no knowledge of the proceedings and could not file a reply or participate in personal hearing.

Issues Involved

Whether an adjudication order could be sustained when the show cause notice was not effectively served due to being uploaded only under the “Additional Notices” tab, whether principles of natural justice were violated, and whether the matter deserved remand for fresh adjudication pending decision of the Supreme Court on the validity of Notification Nos. 9 and 56 of 2023 issued under Section 168A of the CGST Act.

Petitioner’s Arguments

The petitioner submitted that neither the show cause notice nor the adjudication order came to its knowledge as both were uploaded under the “Additional Notices” tab, which was not visible at the relevant time. It was argued that the adjudication order was passed ex parte without affording any opportunity to file a reply or to be heard. The petitioner relied upon earlier decisions of the Delhi High Court where similar matters had been remanded.

Respondent’s Arguments

The Revenue relied upon the adjudication order and submitted that notices were uploaded on the GST portal. It was further contended that subsequent changes had been made to the GST portal making the “Additional Notices” tab visible.

Court Order / Findings

The Delhi High Court observed that at the time when the show cause notice dated 28th December, 2023 was issued, the “Additional Notices” tab was not clearly visible on the GST portal and the notice did not appear to have come to the petitioner’s knowledge. Relying on earlier decisions including Neelgiri Machinery, Satish Chand Mittal and Anant Wire Industries, the Court held that the petitioner was denied an effective opportunity of being heard.

The Court further observed that although the challenge to Notification Nos. 9 and 56 of 2023 was pending before the Supreme Court, the matter could be remanded without examining the vires of the notifications at this stage.

Important Clarification

The High Court clarified that the issue regarding validity of Notification Nos. 9 and 56 of 2023 issued under Section 168A of the CGST Act was left open and any fresh adjudication would be subject to the outcome of proceedings pending before the Supreme Court. All rights and remedies of the parties were kept open.

Final Outcome

The writ petition was allowed. The impugned adjudication order dated 20th April, 2024 was set aside. The petitioner was granted time till 15th December, 2025 to file a reply to the show cause notice. The adjudicating authority was directed to grant personal hearing, consider the reply on merits, and pass a fresh reasoned order in accordance with law.

SOURCE LINK: https://delhihighcourt.nic.in/app/showFileJudgment/75410112025CW159752025_180627.pdf

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