Facts of the Case

The petitioner, Techcoral Solutions, filed a writ petition challenging the show cause notice dated 26.09.2023 issued for Financial Year 2017-18 and the consequent adjudication order dated 14.12.2023. The petitioner also challenged Notification No. 09/2023 (Central Tax), Notification No. 09/2023 (State Tax), Notification No. 56/2023 (Central Tax), and Notification No. 56/2023 (State Tax) issued under Section 168A of the CGST Act extending limitation for adjudication. The show cause notice was uploaded only on the ‘Additional Notices’ tab of the GST portal and did not come to the knowledge of the petitioner. As a result, no reply was filed and the adjudication order was passed ex parte.

Issues Involved

Whether an adjudication order passed without the assessee filing a reply due to non-visibility of the show cause notice on the GST portal violates principles of natural justice, whether such order should be set aside and the matter remanded, and whether the challenge to limitation extension notifications issued under Section 168A of the CGST Act can be decided at this stage.

Petitioner’s Arguments

The petitioner contended that the show cause notice dated 26.09.2023 was uploaded only on the ‘Additional Notices’ tab and was not visible, depriving the petitioner of any opportunity to file a reply or appear for personal hearing. It was argued that the adjudication order was passed in violation of principles of natural justice. The petitioner also questioned the validity of the notifications extending limitation under Section 168A of the CGST Act.

Respondent’s Arguments

The respondents submitted that changes were made to the GST portal after 16.01.2024 making the ‘Additional Notices’ tab visible, and therefore the petitioner ought to have accessed the notice. The respondents further relied on the impugned notifications extending limitation for adjudication.

Court Order / Findings

The Delhi High Court noted that although the GST portal was modified after 16.01.2024, the impugned show cause notice was issued on 26.09.2023 and had not come to the petitioner’s knowledge. Relying on its earlier decisions in Neelgiri Machinery, Satish Chand Mittal, Anant Wire Industries, and Sugandha Enterprises, the Court held that adjudication orders should not be passed in default and that assessees must be afforded a fair opportunity to contest the show cause notice on merits. Considering that the petitioner did not file any reply and was not heard, the Court held that the matter deserved to be remanded. The Court refrained from adjudicating the validity of the impugned notifications, noting that the issue was pending before the Supreme Court.

Important Clarification

The Court clarified that the issue concerning the validity of the notifications issued under Section 168A of the CGST Act was left open and that any fresh adjudication order passed would be subject to the final outcome of proceedings pending before the Supreme Court in SLP No. 4240/2025. The adjudicating authority was directed to communicate hearing notices by email in addition to portal upload.

Final Outcome

The writ petition was disposed of by setting aside the impugned adjudication order dated 14.12.2023. The petitioner was granted time till 31.08.2025 to file a reply to the show cause notice dated 26.09.2023. The adjudicating authority was directed to grant a personal hearing and pass a fresh reasoned order in accordance with law. Access to the GST portal was directed to be restored to the petitioner, and all rights and remedies of the parties were kept open.

Link to Download Order https://www.mytaxexpert.co.in/uploads/1769497940_TECHCORALSOLUTIONSVsCOMMISSIONEROFDGSTGOVERNMENTOFN.C.T.OFDELHIORS..pdf

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