SCN Uploaded in “Additional Notices Tab” Held Invalid – Matter Remanded

Case Title: Mahadev Industries (Through Proprietor Parveen Garg) v. Union of India & Ors.
Court: High Court of Delhi
Petition No.: W.P.(C) 3887/2025 & CM APPL. 18071/2025
Date of Judgement: 23rd April, 2025 (Corrected and released on 29th April, 2025)
Category of Dispute: Natural Justice – Validity of SCN service and Notification under Section 168A
Relevant Sections: Section 73, Section 168A of CGST Act, 2017; Rule 142 CGST Rules

Facts of the Case (Para 2, 6, 7)

• The Petitioner challenged the Show Cause Notice (SCN) dated 01.12.2023 for FY 2018-19 and the order dated 27.04.2024 passed under Section 73 CGST Act, 2017 (Para 2).

• The Petitioner also assailed Notification No. 56/2023-Central Tax dated 28.12.2023 claiming it was issued without prior GST Council recommendation (Para 3-4).

• The SCN was uploaded only in the “Additional Notices Tab” of the GST portal, which did not come to the Petitioner’s knowledge, leading to an ex-parte order without reply or personal hearing (Para 6).

Questions in Consideration (Para 4-6, 9-11)

1. Whether the SCN uploaded in the “Additional Notices Tab” without proper notice/service is valid under GST law?

2. Whether the impugned order passed without affording an opportunity of hearing violates principles of natural justice?

3. Whether Notification No. 56/2023 issued under Section 168A CGST Act extending limitation is valid, given conflicting High Court rulings and pendency before the Supreme Court?

Observations of the Court (Para 4-11)

• Various High Courts have differed on the validity of Notification No. 56/2023, and the issue is now pending before the Supreme Court in SLP 4240/2025 (Para 4-5).

• Court noted earlier Delhi HC rulings (Neelgiri Machinery, Satish Chand Mittal, Anant Wire) where SCNs uploaded under “Additional Notices Tab” were held defective, and matters remanded for fresh adjudication (Para 7).

• Department made post-January 2024 portal changes to make SCNs visible under the main “Notices & Orders” tab, but this SCN (Dec 2023) fell before such rectification (Para 8).

Judgement of the Court (Para 8-12)

• The impugned order dated 27.04.2024 is set aside.

• Petitioner directed to file reply to SCN within 30 days.

• Department to provide personal hearing and serve hearing notice not only on portal but also by email and phone (Para 9).

• Fresh order to be passed on merits after considering reply and hearing (Para 10).

• Challenge to validity of Notification 56/2023 is kept open, subject to outcome of Supreme Court ruling (Para 11).

Between Fine Lines

• If SCNs are uploaded only in the “Additional Notices Tab,” they may be treated as invalid service.

• Ex-parte orders passed without hearing violate principles of natural justice.

• Courts are remanding such cases back for fresh adjudication with opportunity of reply and hearing.

• The larger issue of extension of limitation under Section 168A via Notification 56/2023 is still pending before the Supreme Court.

• Taxpayers should always check both “Notices & Orders” and “Additional Notices Tab” on the GST portal.

Summary of Referred Cases

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