SCN and Ex-Parte GST Order Set Aside for Lack of Hearing

Case Reference:

• Case Name: M/s Reliant Facility Management Pvt. Ltd. v. CBIC & Anr.

• Court: High Court of Delhi

• Petition No.: W.P.(C) 16121/2024 & CM APPL. 67718/2024

• Date of Judgement: 06 May 2025 (corrected & released 13 May 2025)

• Relevant Sections: Section 73 & Section 168A of CGST Act, 2017; Article 226 of the Constitution of India

• Category of Dispute: Procedural Lapse / Natural Justice in GST Adjudication & Challenge to Notifications 9/2023-CT and 56/2023-CT

Facts of the Case

(Para 2, 6–7)

1. The Petitioner challenged SCN dated 28.05.2024 and ex-parte order dated 06.08.2024 for FY 2019–20, as well as the vires of Notifications No. 9/2023-CT & 56/2023-CT.

2. GST registration had been cancelled retrospectively from 01.07.2017 (order dated 26.10.2020), resulting in loss of GST portal access and no knowledge of SCN.

3. No personal hearing was granted, and the impugned order was non-speaking, raising huge demands and penalties.

Questions in Consideration

(Para 4–5, 8–9)

1. Whether the SCN and adjudication order passed without service and without hearing were valid.

2. Whether the Petitioner should be granted opportunity to respond on merits despite pending challenge to notifications before Supreme Court (SLP No. 4240/2025).

3. Whether adjudication can proceed subject to the Supreme Court’s decision on validity of Notifications 9/2023-CT and 56/2023-CT issued under Section 168A of CGST Act.

Observation of Court

(Para 8–10, 12–13)

1. Validity of impugned notifications is already under consideration before Supreme Court in SLP 4240/2025; issue is left open.

2. Since SCN and order were passed without affording opportunity to the Petitioner and without hearing, principles of natural justice were violated.

3. Access to GST portal must be restored to enable reply filing and access to notices/documents.

4. Adjudication should proceed on merits after granting adequate opportunity, and outcome will be subject to Supreme Court’s ruling on notifications.

Judgement of Court

(Para 10–14)

1. Impugned adjudication order dated 06.08.2024 set aside.

2. Petitioner allowed to file reply to SCN by 10.07.2025; adjudicating authority to grant personal hearing and decide afresh.

3. Hearing notice to be served via given mobile number and email.

4. Any fresh order will be subject to Supreme Court’s decision in SLP No. 4240/2025.

5. Writ petition disposed of; all rights and remedies kept open.

Between Fine Lines

• The Delhi High Court quashed an ex-parte GST demand order passed without hearing.

• Court emphasised that procedural fairness and hearing are mandatory before confirming tax demands.

• The case involves a wider legal challenge to GST time-limit extension notifications pending before Supreme Court.

• Adjudication will proceed independently but outcome hinges on the Supreme Court’s ruling.

• GST portal access restoration is a prerequisite for fair defence.

Summary of Referred Cases

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