Lawgics – Judgment No. 198

Synopsis: The demand order was quashed on the ground that the hearing notices must not be merely uploaded on portal but also e-mailed to petitioner.

Case Name: Shri Krishna Sales VS Commissioner of Delhi Goods and Service Tax & Ors.

Citation: W.P. (C) 5524/2025 dated 29th April, 2025

Authority: Delhi High Court

Brief facts of the case:
The petitioner challenged the Show Cause Notice (SCN) dated 26.09.2023 and demand order dated 25.12.2023, issued by the Delhi GST authorities. The challenge also extended to Notification No. 09/2023 Central Tax dated 31.03.2023, which extended the time limits for adjudication under Section 73 of the CGST Act. The SCN was only uploaded under the “Additional Notices and Orders” tab on the GST portal and did not come to the petitioner’s notice. The petitioner filed a rectification application, which was considered time-barred.

Contentions of the Petitioner:
The SCN and subsequent hearing notices were not properly served, being uploaded in a location on the portal that made them easy to miss. The notification extending limitation was issued improperly under Section 168A without valid GST Council approval and is under challenge before the Supreme Court (SLP No. 4240/2025).The demand order was passed ex parte without giving a fair opportunity to respond.

Contentions of the Department:
The SCN was uploaded properly as per current GST portal functionality. The notification extending time limits is valid and backed by GST Council recommendation (in some cases), with related petitions already under consideration in the Supreme Court. The petitioner’s application for rectification was rightly rejected due to limitation bar.

Findings and Decision of the Court:
The demand order dated 25.12.2023 was set aside. The Court allowed the petitioner to file a reply to the SCN within 30 days. The hearing notice must be communicated not just through the portal but also via email. The adjudication order shall be passed afresh, after granting a personal hearing. The outcome of this case will be subject to the final decision of the Supreme Court in the pending SLP on the validity of the notifications.