GST Update

Desk of CA. Praveen Sharma – 897 Series (CAPS)

DELHI HIGH COURT IN THE CASE OF Neelmani Electricals

The Delhi High Court allowed amendment of the writ petition filed by Neelmani Electricals, permitting challenge to certain Central and State GST notifications extending limitation periods, while keeping all objections of the respondents open.

The petitioner challenged a show cause notice dated 16 December 2023 and an ex-parte adjudication order dated 5 April 2024 for FY 2018–19, under which tax, interest, and penalty aggregating to about ?9.53 lakh were raised.

The Court observed that the validity of the impugned GST notifications extending limitation is already pending consideration before the Supreme Court, with conflicting views expressed by different High Courts.

Since no reply was filed and no personal hearing was attended, the adjudication order was passed ex-parte, followed by provisional attachment of bank accounts under Section 83 to protect revenue interests.

The petitioner’s contention that notices were uploaded in an obscure portal tab or were not communicated by its Chartered Accountant was rejected as unsubstantiated.

However, noting that no effective opportunity of hearing was actually availed, the Court set aside the impugned order and remanded the matter to the adjudicating authority, subject to payment of ?10,000 as costs and maintenance of 25% balance in the attached bank accounts.

The petitioner was granted time up to 31 January 2026 to file a reply to the show cause notice, with directions to grant personal hearing and pass a fresh reasoned order, subject to the final outcome of proceedings pending before the Supreme Court on the validity of the notifications.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS