Facts of the Case

The petitioner, RSA Impex LLP, challenged a show cause notice dated 31 May 2024 and the consequent adjudication order dated 20 August 2024 raising a demand of ₹13,38,244. The petitioner also challenged Notification No. 09/2023-Central Tax dated 31 March 2023 and Notification No. 56/2023-Central Tax dated 28 December 2023 along with corresponding State Tax notifications issued under Section 168A of the CGST Act extending limitation. A reminder notice dated 06 July 2024 fixed 19 July 2024 as the deadline for filing reply. The petitioner filed its reply on 24 July 2024, five days after the deadline, and sought a personal hearing. Although a personal hearing had been fixed earlier on 19 July 2024, the same was not attended, and no further hearing was granted after filing of the reply. The adjudicating authority passed the impugned order without considering the reply.

Issues Involved

Whether the adjudication order passed without consideration of the reply filed by the assessee was sustainable, whether denial of a personal hearing after submission of reply violated principles of natural justice, and whether the adjudication could proceed while the validity of notifications issued under Section 168A remained pending before the Supreme Court.

Petitioner’s Arguments

The petitioner contended that the reply filed on 24 July 2024 was not considered at all and that the adjudicating authority rejected the case using standard and non-speaking observations. It was argued that despite requesting a personal hearing after filing the reply, no opportunity was granted, resulting in violation of principles of natural justice. The petitioner also maintained its challenge to the validity of the impugned notifications issued under Section 168A.

Respondent’s Arguments

The Revenue submitted that a personal hearing had already been granted on 19 July 2024, which the petitioner failed to attend. It was argued that sufficient opportunity had been provided and that the adjudication order was validly passed.

Court Order / Findings

The Delhi High Court observed that the reply filed by the petitioner was on record but had not been considered in the impugned order, which merely rejected the petitioner’s case with a standard one-line observation. The Court held that once a reply had been filed, the same deserved proper consideration and a reasoned order. In view of the procedural lapse, the Court set aside the adjudication order and directed that the reply dated 24 July 2024 be duly considered after granting the petitioner a personal hearing. The Court reiterated that the validity of the impugned notifications issued under Section 168A was already under consideration before the Supreme Court in SLP No. 4240/2025 and before the Delhi High Court in connected matters.

Important Clarification

The Court clarified that while granting relief on facts by setting aside the adjudication order for violation of natural justice, it left the issue of validity of the impugned Central and State Tax notifications under Section 168A open, and any fresh adjudication would remain subject to the final outcome of proceedings before the Supreme Court and the Delhi High Court.

Final Outcome

The writ petition was disposed of. The adjudication order dated 20 August 2024 was set aside, the reply filed by the petitioner was directed to be considered afresh after granting a personal hearing, access to the GST portal was directed to be provided, and the adjudicating authority was directed to pass a fresh order within three months, 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/1769497555_RSAIMPEXLLPTHROUGHITSAUTHORJSEDREPRESENTATIVEARPITJAINVsCOMMISSIONEROFDGSTORS..pdf

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