Delhi HC Sets Aside GST Order Passed Without Hearing Taxpayer

Case Reference:

• Case Title: G-Technologies through its Proprietor Manoj Kumar vs. Commissioner of DGST & Ors.

• Court: High Court of Delhi

• Petition No.: W.P.(C) 15714/2024 & CM APPL. 65958/2024

• Date of Judgement: 06 May 2025

• Category: Natural Justice – Validity of Notification & Adjudication Proceedings

• Relevant Sections: Articles 226 & 227 of the Constitution of India; Section 73 & Section 168A of CGST Act, 2017; Corresponding provisions of Delhi GST Act, 2017

Facts of the Case

(Ref.: Para 2–7, 8)

1. The petitioner challenged (i) Show Cause Notice (SCN) dated 22.05.2024 for FY 2019–20, (ii) consequential order dated 11.08.2024, and (iii) vires of certain Central and State GST Notifications extending limitation under Section 73 via Section 168A CGST Act.

2. Petitioner alleged no opportunity to reply to SCN or attend personal hearing; impugned order was cryptic, non-speaking, and violative of natural justice.

3. The challenge to the validity of the notifications was already pending before the Supreme Court in SLP No. 4240/2025 – M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors. and before Delhi HC in W.P.(C) 9214/2024 – Engineers India Ltd. v. UOI & Ors.

Questions in Consideration

(Ref.: Para 4–7, 9–12)

1. Whether the impugned GST adjudication order passed without granting opportunity of hearing is liable to be set aside for violation of natural justice.

2. Whether the challenge to the validity of the Central and State Notifications extending limitation under Section 168A can be decided pending the Supreme Court’s ruling.

Observations of the Court

(Ref.: Para 8–12)

1. The impugned order clearly recorded that no reply was received from the taxpayer and no personal hearing was attended, leading to ex-parte adjudication.

2. Since no effective opportunity was given and the order was non-speaking, it violated principles of natural justice.

3. The validity of the impugned notifications was left open as the matter is sub judice before the Supreme Court and connected petitions before Delhi HC.

Judgement of the Court

(Ref.: Para 10–14)

1. Impugned order dated 11.08.2024 set aside.

2. Petitioner allowed time till 10 July 2025 to file reply to SCN; adjudicating authority to grant personal hearing and pass fresh speaking order.

3. Access to GST portal to be provided to enable filing of reply and access notices/documents.

4. Decision on validity of the notifications to abide by outcome of SLP No. 4240/2025 and W.P.(C) 9214/2024.

Between Fine Lines

• Delhi HC protected taxpayer’s right to be heard before GST adjudication.

• Any GST demand without proper hearing is vulnerable to being quashed.

• Final outcome on limitation extension notifications awaits Supreme Court’s ruling.

• Ex-parte GST orders must be avoided unless adequate notice and hearing is proved.

• Case reinforces adherence to natural justice in GST proceedings.

Summary of Referred Cases