Show Cause Notice Served via ‘Additional Notices Tab’ Quashed for Violation of Natural Justice

Case Title: JKM Impex v. Union of India & Ors.
Court: Delhi High Court
Petition Number: W.P.(C) 6544/2025 & CM APPL. 29740/2025
Category of Dispute: Natural Justice – SCN Service and Adjudication
Date of Judgement: 16 May 2025
Relevant Sections: Article 226 of the Constitution of India, Section 73 and 168A of the CGST Act, 2017
Notifications Challenged: Notification No. 56/2023-Central Tax dated 28.12.2023 and Notification No. 56/2023-State Tax dated 11.07.2024

Facts of the Case [Para 3, 8–10]

• The Petitioner, JKM Impex, challenged the Show Cause Notice dated 12.12.2023 and the resultant adjudication order dated 12.03.2024 passed by the Sales Tax Officer, Ward 206, Delhi.
• The SCN and subsequent reminder were uploaded under the ‘Additional Notices’ tab on the GST portal, which the Petitioner claimed was not visible or brought to their knowledge, hence no reply was filed.
• The impugned order was passed ex parte without providing a hearing opportunity to the Petitioner.
• The petition also challenged the vires of Notification No. 56/2023-Central Tax and corresponding State Notification issued under Section 168A of the CGST Act.

Question(s) in Consideration [Para 4–7, 10]

1. Whether the adjudication order is liable to be set aside when the Show Cause Notice was not duly served.
2. Whether the Petitioner was denied an opportunity of being heard, violating principles of natural justice.
3. Whether relief can be granted pending the Supreme Court’s ruling on the validity of Notification No. 56/2023-Central/State Tax.

Observations of the Court [Para 6–14]

• The Court noted multiple cases where SCNs uploaded on the ‘Additional Notices’ tab were not visible to assessees, and orders were set aside to allow hearing on merits.
• Reference was made to similar Delhi High Court decisions such as Neelgiri Machinery v. Commissioner DGST and Satish Chand Mittal v. STO where matters were remanded for fresh adjudication (Para 9).
• Although visibility issues on the portal were rectified post 16.01.2024, the SCN in this case was issued earlier, justifying remand.
• The Court retained the challenge to the vires of the Notification pending Supreme Court’s judgment in SLP No. 4240/2025 titled M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax (Para 14).

Judgment of the Court [Para 11–15]

• The impugned order dated 12.03.2024 was set aside.
• Petitioner was granted time until 10 July 2025 to file a reply to the SCN.
• The Adjudicating Authority was directed to issue a personal hearing notice via email and SMS and pass a fresh order after granting an opportunity of hearing.
• The matter was disposed of with liberty to the Petitioner to pursue all available remedies.
• Any decision in the matter shall be subject to the outcome of pending SLP No. 4240/2025 and W.P.(C) 9214/2024.

Between Fine Lines

• SCNs issued via the “Additional Notices” tab before GST portal changes in Jan 2024 are considered inadequately served.
• Courts are inclined to remand such matters if ex parte orders have been passed.
• Relief is granted even as the broader issue of the vires of related GST notifications is pending before the Supreme Court.
• Personal hearing must be effectively communicated, not just uploaded on the portal.
• Technical procedural lapses in notice service can nullify entire adjudication processes.

Summary of Referred Cases

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