Ex-Parte GST Order Set Aside for Denial of Hearing Opportunity

Case Reference:

• Case Title: D J Associates Through Its Partner Jayabrata Maulick v. Commissioner of DGST & Ors.

• Court: High Court of Delhi

• Petition No.: W.P.(C) 15726/2024 & CM APPL. 66013/2024

• Date of Judgment: 06.05.2025 (corrected & released on 13.05.2025)

• Category of Dispute: Principles of Natural Justice / Section 73 Proceedings

• Relevant Sections: Sections 73, 75(4), 168A of the CGST Act & DGST Act, CGST Rules 2017 (Rules 100(2), 142(1)(a))

Facts of the Case

(Para 2, 3, 7, 8)

1. The petitioner challenged a show cause notice dated 14.05.2024 and consequent ex-parte order dated 24.08.2024 for FY 2019-20 issued under Section 73 of the CGST/DGST Act.

2. The petition also questioned the vires of Notifications 09/2023 and 56/2023 (Central & State Tax), alleging violation of Section 168A requirements.

3. It was claimed that no opportunity to file reply or attend personal hearing was given, and the order was cryptic and non-speaking.

4. The adjudicating authority proceeded ex-parte, stating that repeated opportunities via GST portal reminders were ignored.

Question(s) in Consideration

(Para 4–6, 9)

1. Whether the impugned ex-parte order violated principles of natural justice by denying reasonable opportunity to the petitioner.

2. Whether proceedings under the challenged notifications should continue pending Supreme Court’s decision in SLP No. 4240/2025 on their validity.

Observations of the Court

(Para 4–12)

1. The validity of the impugned notifications is already under consideration before the Supreme Court and will bind all connected matters.

2. The petitioner was not afforded an adequate hearing, and the impugned order was passed without reply submission or proper personal hearing.

3. The ex-parte nature of the order warranted interference to allow the petitioner to defend on merits.

4. The issue of notification validity was kept open, to be decided in line with the Supreme Court’s judgment and Delhi HC’s pending batch petitions.

Judgment of the Court

(Para 10–14)

1. Impugned order set aside solely on the ground of violation of natural justice.

2. Petitioner allowed to file reply to SCN by 10.07.2025; adjudicating authority to provide fresh personal hearing and pass a speaking order thereafter.

3. Access to GST portal to be restored for reply filing and document viewing.

4. Any fresh order will be subject to the Supreme Court’s decision in SLP No. 4240/2025 and Delhi HC’s verdict in W.P.(C) 9214/2024.

Between Fine Lines

• The Delhi HC quashed an ex-parte GST order as the taxpayer was denied a fair hearing.

• Validity of related GST notifications is sub judice before the Supreme Court.

• The taxpayer now has time till 10.07.2025 to respond to the SCN.

• The fresh decision will depend on SC’s ruling on notification validity.

• The judgment reinforces that even procedural lapses in tax proceedings can warrant quashing of orders.

Summary of Referred Cases

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.”