GST Update

 Desk of CA Praveen Sharma – 906 Series (CAPS) 

Delhi High Court in the case of Friends Medicos

The Delhi High Court heard the matter in hybrid mode. The exemption application was allowed and the Court proceeded to hear the main writ petition.

The petitioner challenged the show cause notice dated 30 May 2024, the demand order dated 29 August 2024, and the rectification order dated 25 November 2025 issued under GST law.

A tax demand of about ?72 lakh, including tax, interest, penalty, and fees, was confirmed for the period April 2019 to March 2020.

The petition also raised a broader challenge to notifications extending limitation periods, an issue already pending before the Supreme Court due to conflicting views of various High Courts.

Different High Courts have taken divergent views on these notifications, and judicial discipline requires that the final decision be left to the Supreme Court.

On facts, the petitioner stated that a reply to the show cause notice was duly filed by email and also uploaded on the GST portal, but the adjudicating authority incorrectly recorded that no reply was filed.

The Court found a clear violation of principles of natural justice, as the reply was not considered and both the adjudication and rectification orders were passed mechanically.

Accordingly, the Court set aside the demand and rectification orders, remanded the matter for fresh adjudication, granted time to file a reply, and directed that a personal hearing be given. All issues, including the validity of the limitation notifications, were kept open and subject to the final decision of the Supreme Court.

Link:CA. Praveen Sharma on Linkedin

Regards
CAPS