Delhi High Court Sets Aside Ex Parte Order Based On Show Cause Notice Uploaded Only On GST Portal

The Delhi High Court recently set aside an ex-parte order passed against a taxpayer under the Central Goods and Services Tax Act 2017, noting that the show cause notice had been uploaded only on the GST portal.

The Division Bench of Justices Anil Kshetarpal and Harish Vaidyanathan Shankar remitted the matter to the Adjudicating Authority for fresh adjudication in terms of the directions passed by the Punjab and Haryana High Court in Luxmi Traders v. Union Territory of Chandigarh & Ors.

Petitioner had challenged an order dated February 18, 2025, passed by the Sales Tax Officer under Section 73. The proceedings were conducted ex-parte pursuant to a show cause notice dated November 20, 2024 which had been uploaded on the web portal.

The Court took note of the ruling in Luxmi Traders, where the Punjab and Haryana High Court held that service of an SCN cannot be deemed sufficient merely because it has been uploaded on the Common Portal, unless its receipt is acknowledged by the assessee or the assessee files a reply.

The Punjab and Haryana High Court had further held that where an SCN is served only through the Common Portal and an ex parte order is passed in the absence of a reply, the proceedings should be restored to the stage of issuance of the SCN, with the assessee being given an opportunity to file a reply and avail a hearing.

Applying the said directions, the Delhi High Court observed that the impugned order had been passed ex parte after the SCN was uploaded on the web portal.

“Be that as it may, in view of the fact that the Impugned Order dated 18.02.2025 came to be passed ex parte pursuant to the SCN having been uploaded on the web portal, the matter is remitted to the Adjudicating Authority for fresh adjudication in terms of the directions issued in Luxmi Traders (supra),” the Court ordered.

It thus directed the Petitioner to appear before the concerned authority.

For Petitioner: Advocates Jitin Singhal and Pravesh Bahuguna.

For Respondents: Standing Counsel Himanshi Singh with Advocate Rohit Kumar for UOI; Panel Counsel (Civil) Vaishali Gupta, GNCTD; Standing Counsel Nitin Saluja with Advocates Vasudha Singh and Shivani Mehta for Respondent No. 3.