GST Update

 Desk of CA. Praveen Sharma – 880 Series (CAPS) 

DELHI HIGH COURT
Globus Agrofoods Pvt. Ltd.

Two writ petitions were filed challenging show cause notices and assessment orders for FY 2017-18 and 2019-20, along with objections to certain Central and State GST notifications. Since multiple High Courts have taken different views on these notifications and the issue is pending before the Supreme Court, the Delhi High Court kept the challenge open.

For both years, the taxpayer did not reply to the notices nor attend hearings, resulting in ex-parte orders. The petitioner claimed that for FY 2017-18, the notice appeared only under the “Additional Notices” tab of the portal, preventing timely response. This explanation was not accepted for the FY 2019-20 notice issued after system improvements.

The Court observed that in several similar cases where notices were missed due to portal placement or lack of hearing, matters were remanded to provide fair opportunity. Applying the same principle, the Court set aside both assessment orders and granted one more chance to contest the matter on merits.

The petitioner must deposit costs of Rs. 10,000 per petition with the Delhi High Court Legal Services Committee and file replies to both notices by 10 January 2025. The adjudicating authority must then issue a hearing notice via email or mobile and pass a fresh, reasoned order. The final outcome will remain subject to the Supreme Court’s decision on the relevant notifications.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS