SCN Uploaded in ‘Additional Notices’ Tab—Order Set Aside for Denial of Hearing

Case Details:
Case Title: M/s Gayatri Furniture v. Union of India & Ors.
Court: Delhi High Court
Petition No.: W.P.(C) 6728/2025 & CM APPL. Nos. 30567-68/2025
Date of Judgment: 19th May 2025
Category of Dispute: Show Cause Notice (SCN) – Natural Justice – Procedural Impropriety
Relevant Sections: Article 226 of the Constitution; Section 168A of the CGST Act, 2017
Impugned Notifications: Notification No. 56/2023-Central Tax and State Tax
Judges: Hon’ble Justice Prathiba M. Singh and Hon’ble Justice Rajneesh Kumar Gupta

Between Fine Lines:

The Delhi High Court set aside an ex parte GST adjudication order where the SCN was uploaded in the “Additional Notices” tab of the GST portal, denying the petitioner an opportunity to reply. The matter was remanded for fresh adjudication. The validity of the relevant GST notifications was kept open and is subject to the Supreme Court’s decision.

Facts of the Case:

[¶3-4, ¶8-9]

• The Petitioner, M/s Gayatri Furniture, challenged an order dated 10.04.2024 issued by the Sales Tax Officer, Delhi.

• The order emanated from a Show Cause Notice (SCN) dated 14.12.2023 uploaded only on the “Additional Notices” tab of the GST portal.

• Petitioner submitted that this SCN was not brought to their notice, and no opportunity to respond was granted.

• Consequently, the order was passed ex parte, without hearing the petitioner.

Question(s) in Consideration:

[¶5-7, ¶13]

1. Whether the impugned SCN uploaded in the “Additional Notices” tab satisfies principles of natural justice?

2. Whether the impugned order passed without giving the petitioner an opportunity to be heard is valid?

3. Whether the extension of limitation period via Notification No. 56/2023 (under Section 168A) is valid—pending adjudication before the Supreme Court?

Observations of the Court:

[¶5-10]

• The Court noted similar cases (e.g., Neelgiri Machinery, Anant Wire Industries, Satish Chand Mittal) where the SCN uploaded in the “Additional Notices” tab led to denial of opportunity.

• The Court observed that the GST portal was modified only after 16.01.2024 to make the “Additional Notices” tab prominent.

• Citing precedents, the Court acknowledged the petitioner may have genuinely missed the notice.

• The matter was pending before the Supreme Court in SLP No. 4240/2025 concerning the validity of Notification 56/2023, hence that issue was kept open.

Judgment of the Court:

[¶11-15]

• The impugned order dated 10.04.2024 was set aside.

• The matter was remanded back to the Adjudicating Authority for fresh hearing on merits.

• Petitioner was allowed time until 15.07.2025 to file a reply to the SCN.

• The Adjudicating Authority was directed to issue a personal hearing notice by email and SMS and pass a fresh order after hearing.

• The adjudication outcome shall be subject to the Supreme Court’s decision in SLP No. 4240/2025 and Delhi HC’s decision in W.P.(C) 9214/2024.

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.”