GST Update

 Desk of CA. Praveen Sharma – 945 Series (CAPS) 

Delhi High Court in the case of Chemistry Design Pvt. Ltd.

The Delhi High Court considered a writ petition challenging an Order-in-Original passed in December 2025 following a show-cause notice dated 26 June 2025. The petitioner submitted that although the notice was sent by email and uploaded on the portal, it went unnoticed and no reply could be filed. Consequently, the order was passed without an effective opportunity of hearing.

The petitioner further argued that after approval of an amalgamation scheme by the NCLT, a no-dues certificate had been issued to the erstwhile company and its registration stood cancelled. Therefore, according to the petitioner, no liability could survive.

The department maintained that proper notice had been served through email and portal upload and that due process was followed.

Before the Court, the petitioner undertook to deposit the entire amount mentioned in the impugned order within two weeks and to submit a detailed reply if granted a fair opportunity of hearing.

Considering the undertaking, the Court quashed the impugned order subject to deposit of the amount within two weeks. The authority was directed to pass a fresh order after granting proper hearing. The deposited amount shall be adjusted if liability is confirmed or refunded if proceedings are dropped.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS