Case Title: DJST Traders Private Limited v. Union of India & Ors.
Court: Delhi High Court
Petition Number: W.P.(C) 16499/2023 & CM APPL. 66474/2023
Relevant Section: Section 73 and Section 168A of the CGST/DGST Act, 2017
Category of Dispute: Adjudication Procedure under Show Cause Notice
Date of Judgement: 23 April 2025
Applicable Provisions: Sections 73 & 168A of CGST Act, 2017
Facts of the Case
[Para 2, 6-8]
DJST Traders Pvt. Ltd. challenged a Show Cause Notice dated 23.09.2023 issued under Section 73 of the CGST/DGST Act, and also impugned Notification No. 9/2023-Central Tax dated 31.03.2023. The SCN culminated into an adjudication order dated 31.12.2023, which was passed ex parte during pendency of the writ. Although the petitioner submitted a reply on 08.10.2023, it lacked supporting documents.
Questions in Consideration
[Para 3-5]
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Whether Notification No. 9/2023-Central Tax and the procedure under Section 168A was lawfully issued and applied?
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Whether the ex-parte order passed despite partial reply to SCN and pending challenge was valid?
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Should the petitioner be given a fair opportunity to present supporting documents and be heard?
Observation of Court
[Para 8-11]
The Court acknowledged that while the validity of Notification No. 9/2023 is sub judice before the Supreme Court in SLP No. 4240/2025, the adjudication order was passed without supporting documents and personal hearing. The Court held that procedural fairness required giving the petitioner another opportunity to respond comprehensively and be heard in person. It also emphasized that notices for hearing must be communicated properly.
Judgement of the Court
[Para 12-13]
The Delhi High Court set aside the adjudication order dated 31.12.2023. It directed that the petitioner may file a fresh reply along with documents within 30 days. The adjudicating authority shall issue a personal hearing notice and consider the reply and submissions afresh before passing a new order. The writ petition was disposed of accordingly.
Between Fine Lines
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Delhi High Court quashed the ex-parte order for lack of procedural fairness.
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Petitioner allowed to file fresh reply and present supporting documents.
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Personal hearing is now mandatory in fresh proceedings.
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Validity of GST notification remains undecided pending Supreme Court verdict.
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A fresh adjudication order will be issued after full consideration.
Summary of Referred Cases
| Name of Case | Citation | Summary | Verdict |
|---|---|---|---|
| M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors. | SLP No. 4240/2025 | Challenge to validity of Notifications 9/2023 & 56/2023 issued under Section 168A CGST Act | Pending before Supreme Court |
| Guwahati HC Decision | Not specified | Quashed Notification 56/2023 Central Tax for non-compliance with Section 168A | Quashed |
| Allahabad HC Decision | Not specified | Upheld Notification 9/2023 Central Tax | Upheld |
| Patna HC Decision | Not specified | Upheld Notification 56/2023 Central Tax | Upheld |
| Punjab & Haryana HC Batch Orders | Order dated 12.03.2025 | Deemed all similar writs will abide by SC decision in SLP 4240/2025 | Disposed, binding on SC verdict |
