Case Reference:
Case Title: Fair Deal Cars Pvt. Ltd. v. Commissioner CGST, Delhi East Commissionerate & Anr.
Court: High Court of Delhi
Petition No.: W.P.(C) 12672/2024 & CM APPL. 52806/2024
Date of Judgement: 06.05.2025 (corrected & released on 13.05.2025)
Relevant Sections: Section 73, Section 61, Section 168A of the CGST/DGST Act, 2017; Rule 142(1A) of CGST Rules, 2017
Category of Dispute: Adjudication Proceedings – Validity of Notifications & Opportunity of Hearing
Facts of the Case
(Para 2–7)
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Petitioner challenged (i) OIO No.09/PJ/ADJ/AC/2024-25 dated 26.04.2024 under Section 73, (ii) SCN dated 07.11.2023, and (iii) CBIC Notifications No. 56/2023-CT & 09/2023-CT.
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Notifications were already under challenge in a batch matter (W.P.(C) 16499/2023 – DJST Traders Pvt. Ltd.) concerning Section 168A powers for time extension.
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Multiple HCs had differing views; matter now pending before Supreme Court in SLP No. 4240/2025.
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Petitioner alleged no pre-consultation notice in Form GST DRC-01A as per Rule 142(1A) was issued; thus, they did not file reply or attend hearings.
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Prior to SCN, an ASMT-10 notice (01.02.2023) for FY 2018-19 scrutiny was issued, and reply in ASMT-11 was filed (23.05.2023).
Questions in Consideration
(Para 4–11)
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Whether adjudication order passed without considering reply or personal hearing opportunity can be sustained.
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Whether absence of DRC-01A pre-consultation violates Rule 142(1A) CGST Rules.
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Effect of pending Supreme Court decision on validity of Notifications 09/2023 & 56/2023 under Section 168A.
Observations of the Court
(Para 8–11)
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Petitioner had not availed personal hearings despite four opportunities; however, given no reply was filed, another opportunity was warranted.
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Access to GST Portal must be ensured for reply filing and document access.
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Issue of notification validity left to be decided by Supreme Court; adjudication to proceed independent of that determination.
Judgement of the Court
(Para 9–12)
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Impugned OIO dated 26.04.2024 was set aside.
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Matter remanded to Adjudicating Authority; Petitioner to file reply by 10.07.2025.
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Authority to grant personal hearing and decide on merits; notice to be sent to specified email & phone.
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Order subject to outcome of Supreme Court’s verdict in SLP No. 4240/2025.
Between Fine Lines
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Delhi HC quashed an ex-parte GST adjudication order.
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Court emphasised right to be heard before final tax determination.
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Procedural lapse under Rule 142(1A) was noted though SCN proceedings to continue.
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Pending Supreme Court decision on Section 168A notifications will bind the case.
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Fresh timeline and hearing opportunity granted to taxpayer.
Summary of Referred Cases
| Name of Case | Citation | Summary | Verdict |
|---|---|---|---|
| DJST Traders Pvt. Ltd. v. UOI & Ors. | W.P.(C) 16499/2023 (Delhi HC) | Challenge to Notifications 09/2023 & 56/2023 under Section 168A for time extension | Pending; validity yet to be decided |
| M/s HCC-SEW-MEIL-AAG JV v. AC State Tax & Ors. | SLP No. 4240/2025 (SC) | Challenge to same notifications; cleavage of opinion among HCs | Pending before SC |
| Allahabad HC Judgment | Not specified | Upheld validity of Notification 09/2023 | Notification sustained |
| Patna HC Judgment | Not specified | Upheld validity of Notification 56/2023 | Notification sustained |
| Guwahati HC Judgment | Not specified | Quashed Notification 56/2023 | Notification invalid |
| Telangana HC Judgment | Not specified | Observed invalidity of Notification 56/2023 but left vires open | Matter under SC consideration |
| Punjab & Haryana HC Order | 12.03.2025 | Deferred decision; made cases subject to SC’s verdict | Interim orders to continue |
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”
