Facts of the Case

The petitioner, M/s Rau’s IAS Study Circle, a civil services coaching institute, filed a writ petition challenging a show cause notice dated 21 May 2024 and the consequential adjudication order dated 22 August 2024 passed by GSTO-41, Delhi Department of Trade & Taxes. The petition also challenged Notification No. 09/2023-Central Tax dated 31 March 2023, Notification No. 56/2023-Central Tax dated 28 December 2023 and corresponding State Tax notifications extending limitation under Section 168A of the CGST Act. The petitioner contended that it could not access the GST portal or file a reply due to exceptional circumstances, including tragic incidents on 27 July 2024 and the arrest of its CEO, who was subsequently released on bail. As a result, the adjudication order was passed ex parte.

Issues Involved

Whether the adjudication order passed without consideration of reply deserved to be set aside, whether the petitioner should be granted an opportunity to file a reply to the show cause notice, and whether adjudication proceedings could continue while the validity of Section 168A notifications was pending before the Supreme Court.

Petitioner’s Arguments

The petitioner submitted that it was prevented from filing a reply to the show cause notice due to extraordinary and unavoidable circumstances. It was argued that denial of opportunity resulted in violation of principles of natural justice. The petitioner also challenged the validity of the impugned notifications extending limitation under Section 168A, contending that they were issued without proper recommendation of the GST Council and beyond statutory limits.

Respondent’s Arguments

The Revenue relied on the impugned show cause notice and adjudication order and submitted that the notifications extending limitation were already under consideration before multiple High Courts and the Supreme Court. It was contended that adjudication had proceeded in accordance with the notifications in force.

Court Order / Findings

The Delhi High Court noted that the validity of Notification Nos. 09/2023 and 56/2023 issued under Section 168A of the CGST Act was already under consideration before the Supreme Court in SLP No. 4240/2025 titled M/s HCC-SEW-MEIL-AAG JV vs. Assistant Commissioner of State Tax & Others, and that divergent views had been expressed by various High Courts. Without entering into the vires of the impugned notifications, the Court held that, on facts, the petitioner deserved an opportunity to file a reply as the adjudication order had been passed ex parte. Accordingly, the impugned adjudication order was set aside and directions were issued to enable the petitioner’s GST portal and grant time to file a reply.

Important Clarification

The Court clarified that the issue regarding validity of the impugned Central and State Tax notifications issued under Section 168A was kept open and any adjudication order passed pursuant to the present directions would remain subject to the outcome of the proceedings before the Supreme Court in SLP No. 4240/2025 and related matters pending before the Delhi High Court.

Final Outcome

The writ petition was disposed of. The impugned adjudication order dated 22 August 2024 was set aside, the petitioner was permitted to file a reply to the show cause notice by 31 August 2025 after enabling access to the GST portal, and the adjudicating authority was directed to decide the matter afresh in accordance with law, subject to the final decision of the Supreme Court on the validity of the impugned notifications.

 Link to Download Order https://www.mytaxexpert.co.in/uploads/1769497473_MSRAUSIASSTUDYCIRCLEVsGOODSANDSERVICETAXGSTO41DELHIDEPARTMENTTRADETAXESGOVERNMENTOFNCTOFDELHIANR..pdf

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